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French Regulators Warn of Several Unauthorized Cryptocurrency Platforms

France’s financial markets regulator has circulated a new notice against unlicensed platforms offering cryptocurrency investments. Four unwarranted websites were blacklisted by the regulator.

The French financial markets regulator, the Autorité des Marchés Financiers (AMF), on the 18th of June, issued a warning saying “the public against several companies proposing atypical investments without being authorized to do so.”

The AMF was formed as an autonomous public agency with the sole aim to safeguard the savings invested in the financial products. According to Law no. 2016-1691 on transparency, it is illegal to market an investment offer in the French Republic without the consent of the AMF or a registration number.

Along with the warning, there were four websites which were blacklisted by the regulator. The aforementioned websites are bitoraxe.com, solutioncrypto.com, solution-crypto.com, and connect-coin.fr. As of 23rd June, connect-coin.fr is already offline while the other three are live with solution-crypto.com redirecting to solutioncrypto.com.

The AMF has previously placed an embargo on 15 such websites offering crypto investments which had been operating without a license. AMF maintains three such lists for such websites, one each for forex products, binary options and other goods(diamonds, wines and cryptocurrencies).

While the regulator started maintaining such lists from July 2017, cryptocurrencies were added only by December.

AMF’s Epargne Info-services centre which responds to investment complaints and claims has been instrumental in tracking losses in cryptocurrencies. During the AMF’s annual report presentation last month, Chairman Robert Ophèle said:

“During the first four months of the year, out of more than 4,000 requests processed by our Epargne Info-services centre, 700 concerned crypto-assets with nearly 250 claims or reports reporting more than €9 million in losses.”

He also emphasised the fact about how cryptocurrencies have become a popular choice over binary options and how the highly leveraged contracts for difference (CFDs) have been the most pressing problem.

France plans on forming a legal framework for initial coin offerings (ICOs) by the next year. It has already brought down the tax rate on crypto capital gain from 45% to 19%.

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