The French regulator has issued an urgent discussion around the crypto CFDs spreading.
Recently, the Autorité des Marches Financiers regulator has announced that it is going to prohibit distribution and any form of advertising of crypto derivatives. It has published a strict warning to brokers who provide CFDs trading, as the services they offer are against the Sapin 2 Law that was introduced in 2017.
According to the regulatory authority, the legal qualification of crypto derivatives have to comply with the whole regulations set. The companies need to get the AMF approval prior to offering those contracts. Brokers are restricted from providing such derivatives and their advertising.
They also outline that the boom on the crypto-market led to the increase of CFDs, as well as binary options proposals by Forex brokers.
AMF’s decision has been taken after a deep legal analysis of crypto derivatives contracts. The main reason lays in the fact that a product has to consider the estimate of a cryptocurrency. They mean finding out whether it can be an underlying asset that is along with the MiFID rules.
In this context, they state that derivatives are limited by the legal determination for underlying assets.
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