According to a new report, a French market regulator has started cracking down on online trading platforms that offer cryptocurrency derivatives.
With the recent rise for cryptocurrencies worldwide, many trading platforms have started offering binary options, contracts, and derivative products tied to major cryptocurrencies like Bitcoin, Litecoin, and Ethereum. These new trading products have drawn the attention of several regulatory agencies in Europe. One of them is the French Autorite des Marches Financiers, which stated:
"The AMF concludes that a cash-settled cryptocurrency contract may qualify as a derivative, irrespective of the legal qualification of a cryptocurrency.
As a result, online platforms which offer cryptocurrency derivatives fall within the scope of MiFID 2 and must therefore comply with the authorisation, conduct of business rules, and the EMIR trade reporting obligation to a trade repository. Above all, these products are subject to the provisions of the Sapin 2 law, and notably the ban of advertisements for certain financial contracts."
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