France's stock market regulator released a statement about cryptocurrency-tied derivatives on Thursday, which includes a curb on the advertising of such products.
In its statement, L'Autorite Des Marches Financiers (AMF) said that trading platforms should not be allowed to market cryptocurrency derivative products electronically, per regulations that cover derivatives more broadly. The publication followed a months-long review process, according to the AMF.
The agency said:
The EU's Markets in Financial Instruments Directive (MiFID II) is an update to previous legislation, with the stated goal of providing greater transparency across asset classes in the name of investor protection. The initiative came into effect on Jan. 3.
The AMF's missive is the latest from the agency on the topic of cryptocurrencies, coming months after it first weighed in initial coin offerings (ICOs). In October, the agency launched an ICO-focused initiative, dubbed the Universal Node to ICO Research Network (UNICORN).
The effort, according to statements at the time, was aimed at "offering to these carriers of projects a frame allowing the development of their operations and to ensure the protection of actors and investors wishing to participate."
Other regulatory bodies within the EU have been looking into the issue of crypto derivatives as well.
The European Securities and Markets Authority (ESMA) is investigating if such contracts comply with MiFID rules, and announced in January that it was seeking public input on potential rule changes.
Bitcoin and French flag image via Shutterstock
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.