France Stock Market Regulator Plans on Digital Currencies Regulations to Ensure EMIR Trade Reporting Obligation and Business Conduct Rules are Being Complied
AMF, Autorité des marchés financiers is planning on strict regulations for digital currencies in the country. The Stock Market Regulatory Body ruled that companies who are accepting or supporting cryptocurrencies must abide by specific rules.
AMF made the decision to implement or enforce strict rules after the legal qualification of digital currencies was reviewed. The AMF triggered the review of regulations after the rise in cryptocurrencies arose with online trading platforms starting to offer certain binary options.
A recent study was done with the AMF looking at all legal qualifications within the context of cryptocurrency derivatives. They also looked into the aspect if the digital currencies can be deemed as a legal eligible underlying. As a result of the study the AMF concludes that a cash contract may qualify as a derivative and is “irrespective of the legal qualification of a cryptocurrency.”
Online gambling platforms that offer cryptocurrency derivatives across France will have to ensure that the authorization, EMIR trade reporting obligation and conduction of business rules are being complied. Also, all products are subject to the Sapin2 law and provisions as well as they must ban advertisements that are related to specific financial contracts.