Categories: ICO

French Regulator Blacklists More Fraudulent Crypto Businesses

Click here to view original web page at news.bitcoin.com

AMF, France’s financial regulator, has expanded its list of entities involved in fraudulent activities often related to cryptocurrency investments. The agency has added 21 new websites most of which have been luring French investors with offers to participate in token sales and digital assets trading.

Also read: Russian Crypto Groups in Telegram Increase Membership Despite Ban

France Updates Crypto Scams List

L’Autorité des Marchés Financiers (AMF), the French financial markets authority, has updated its blacklist of businesses providing services that entangle investors in fraudulent schemes. Most of the 21 new names belong to the grey segment of the crypto industry and offer investment opportunities in initial coin offerings (ICOs), cryptocurrency trading or mining projects. What’s common between these entities is that neither of them is authorized to operate in the sector. In its official announcement, the AMF notes that the list is updated regularly but warns that new actors appear all the time.

The move comes after in March French authorities blacklisted 15 online platforms suspected of similar offenses. Later, in July AMF stated that digital asset investments pose a risk to French citizens as they could be offered by scammers. The regulatory body included the warning in its annual financial industry risk assessment report. Despite being categorical about the threats, the agency admitted that the lack of reliable data hampers its efforts to single out and estimate the risks associated with this type of financial activities.

The task of the French regulators is further complicated by the fact that cryptocurrencies and crypto-related products are not yet fully covered by the current legal definitions in the country’s legislation. Under French law, they are neither considered currencies nor regarded as financial instruments. Besides, it’s unclear which particular state institution bears responsibility and is competent to perform control and oversight functions.

Nevertheless, the AMF concluded earlier this year that crypto derivatives should be subject to the rules applicable to financial instruments under the Monetary and Financial Code of France. The same law is in full force in regards to the acts of approval of entities that are selling these products, as well as the regulations governing their operations.

Efforts to Make ICOs Safer for Investors

French authorities defined digital tokens as rights to the future use of services offered by the issuer noting that investors are actually betting on the success of the respective projects. However, tokens were not recognized as financial instruments. Despite these clarifications, crowdfunding through ICOs remained generally outside the scope of the French regulatory framework at the time.

This month, lawmakers in Paris adopted new legislation introducing guidelines as part of a legal framework designed to regulate token sales in the crypto space. The law grants the AMF powers to license entities planning to conduct ICOs under certain conditions such as providing specific guarantees to participants. Token issuers will also be required to disclose any relevant information that would allow investors to make informed decisions about their projects.

The French financial markets authority considered the lack of dedicated regulations an inherent risk of ICOs. The new rules which are part of president Emmanuel Macron’s plan to improve the business climate in the country, along with the decision to significantly cut taxes on crypto profits, can potentially turn France into another European jurisdiction with crypto-friendly characteristics.

Do you think the measures taken by the AMF will limit the number of fraudulent schemes related to cryptocurrencies? Share your opinions on the subject in the comments section below.

Images courtesy of Shutterstock, AMF.

Now live, Satoshi Pulse. A comprehensive, real-time listing of the cryptocurrency market. View prices, charts, transaction volumes, and more for the top 500 cryptocurrencies trading today.

cinerama

Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Share
Published by
cinerama

Recent Posts

Kristy Leigh Minehan: Bitcoin SV is treating miners right

At the CoinGeek Toronto 2019 scaling conference , Kristy Leigh Minehan used her time on stage to tell everyone how… Read More

1 hour ago

#CryptoCorner: BTC Still Dominant Over Altcoins, EU Antitrust Regulators Probe Libra, Austrian Telecom Giant A1 Accepting Crypto Payments

(MENAFN - Investor Ideas) #CryptoCorner: BTC Still Dominant Over Altcoins, EU Antitrust Regulators Probe Libra, Austrian Telecom Giant A1 Accepting… Read More

1 hour ago

Mark Mobius Calls Bitcoin a “Psycho Currency”

Bitcoin has a habit of dividing people. Some are all for it, while others think it’s weird, evil, or a… Read More

1 hour ago

US, France, and Germany Dominate Bitcoin Nodes By Country

Among the many reasons that make Bitcoin unique, is that it’s designed to be a global currency accessed by anyone,… Read More

1 hour ago

Ukrainian Power Plant Officials Accused of Unauthorised Cryptocurrency Mining

SBU (Security Service of Ukraine) detectives have discovered a cryptocurrency mining operation at one of the nation’s nuclear power plants.… Read More

1 hour ago

Bears in Charge as Bitcoin Price at Risk of November 2018 Style Dump

Throughout much of 2018, support at $6,000 acted as the absolute Bitcoin price floor, with each time bears pushed the… Read More

1 hour ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More