On Thursday, the regulator of financial markets in France has said it will fight the trade in unregulated cryptocurrencies futures and other derivatives.
In a statement
Control on the financial markets of France (AMF) States that the regulator watched as various online trading platforms have launched derivatives trading on the basis of cryptocurrencies such as binary options, contracts for difference (CFDs) and Forex contracts. The Agency, which attributed this development to «the recent cryptocurrency boom,» said that cryptocurrency contracts cash settlements qualify as derivatives, which makes them subject to falling under regulation of the AMF.
«AMF concluded that cryptocurrency contracts cash payments can qualify as derivatives, regardless of the legal limitations of crypto-currencies,» — said the Agency. «Therefore online platform offering cryptocurrency derivatives fall within the scope of MiFID 2 and should work in accordance with the laws and reporting EMIR trade repository».
The AMF added that the platforms it is also prohibited to advertise certain financial contracts. Bloomberg reports that at least two French trading platform Plus500 Ltd. IG Group Holdings Plc reported significant earnings growth in their quarterly reports, which are partly responsible derivatives on cryptocurrencies.
Bloomberg notes that increased interest in AMF unregulated derivatives on cryptocurrencies caused by active actions of the European Union (EU) against of derivatives for retail investors. It is reported that the EU regulators are considering a ban for trading platforms for advertising and selling these products to retail investors, referring to problems of volatility and investor protection.