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.