France's AMF classifies cryptocurrency-based products under derivatives

Posted 22 February, 2018


France's Autorite des Marches Financiers (AMF) has determined that the financial products based on cryptocurrencies should be regulated as derivatives according to Financial Times. As a result, the platforms will need to obtain licenses for such operations. Moreover, they will be prohibited from online promoting cryptocurrency contracts.

"As a result, online platforms which offer cryptocurrency derivatives fall within the scope of MiFID 2 and must, therefore, comply with the authorization, conduct of business rules," according to the official report.

At the same time, it is still unclear to what legal class digital coins belong, news media reports. The global regulators gave neither the response to question nor instructions whether the coins might be considered as assets like currencies or commodities.

According to the AMF  comments, French exchanges now must receive permission to offer cryptocurrency-based financial products under the Markets in Financial Instruments Directive II.

"The AMF concludes that a cash-settled cryptocurrency contract may qualify as a derivative, irrespective of the legal qualification of a cryptocurrency," the regulator statement reads. 

The AMF determination can become a guideline for other regulators concerned about this segment. For reference, the EU and UK bodies warned earlier about high risks coming out of the crypto contracts trading.

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23 February, 2018 15:09

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22 February, 2018 14:18

Bitcoin trims gains following 5-day upturn →

Bitcoin weakened further on Thursday moving down from the peak above $11,000 reached over the past five days.

On the Bitfinex the main cryptocurrency changed hands at some $10,270 today (6.9% down d-o-d). The second major coin – Ethereum – was quoted on this exchange at $825. The top-3 Ripple coin was recorded at 0.94171, while Litecoin – $206.52.

Bitcoin trims gains following 5-day upturn
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