The Autorité des marchés financiers (AMF), the regulatory body in the financial sector in France,made a statement in press release wherein it states that online platforms or any company that allows users to carry out commercial transactions with cryptocurrency derivatives are not qualified to do it directly, and would require passing through approval process to continue with their business.
Although the current laws of the European Union do not officially define what a “derivative” is, as per the statement from legal framework known as the Financial Instruments Market Directive (MiFID) provides a basis for the definition to certain financial instruments, such as the “derivatives” mentioned. Then, according to its own analysis, the AMF has determined that derivatives based on digital assets conform to this definition
Hence, any online platforms or company that offer these financial products are subject to a set of related regulations, which falls under the MiFID II.
In addition to the official approval to operate, these platforms will be required to comply with the “conduct of business rules” of MiFID II and are subjected to follow regulatory provisions from European Market Infrastructure Regulation ( EMIR), which requires exchanges of over-the-counter derivatives to be reported to a central “operations repository”
In a speech made last January, the French finance minister asked for proposals aimed at preventing the virtual currency from being used for heavily criminalized criminal activities, such as money laundering, tax evasion and financing of terrorism.
Similarly, the minister urged and made the request to a former deputy governor of the Bank of France to initiate an investigation into cryptocurrencies.
Thus, France is emerging as another nation of the European Union in which, despite having freedom, the growing market for cryptocurrencies is subject to extensive revisions.
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