French financial regulators have blacklisted 15 cryptocurrency websites, mirroring a move undertaken by Belgian authorities a month ago.
The French claim that the websites in question have been pushing investments that violate both European and French law.
France’s financial market authority, the AMF, took measures to remind the public that cryptocurrency businesses fall under the purview of the a law designed to thwart fraud and corruption, known as Sapin II.
Following an examination by the AMF, the agency concluded that the legal status of cryptocurrency derivatives needs to follow specific business conduct rules.
The AMF believes cryptocurrencies should be considered derivatives and thus are similar to high-risk investments such as binary options. The law denies the digital advertising of binary options and other investments considered too risky for ordinary investors.
Crypto sites also fall, the agency contends, under the legal requirements of the European Union Markets in Financial Instruments Directive (MiFID).
This legislation set many rules regarding financial products and those offering them. Such regulations were intended to make European markets safer and more transparent following the 2008 financial crisis.
The EU has declared that it too will soon draft legislation concerning digital currencies.
The economic and political market organization first advised that regulation should take place on a global level. Barring that, the EU would take on the task, if necessary.
“We do not exclude the possibility to move ahead [by regulating cryptocurrencies] at the EU level if we see, for example, risks emerging but no clear international response emerging,” said EU financial chief Valdis Dombrovskis.
U.S. companies such as Google, Facebook and Twitter have taken to safeguard their users by voluntarily blocking cryptocurrency advertising on their own networks.
Nevertheless, a major economic report released by the U.S. Congress suggests that regulation, not bans, are the near future for crypto investors.
The 2018 Joint Economic Report includes an entire section dedicated to cryptocurrencies and blockchain, the first time crypto has been taken seriously by the United States.
The Joint Economic Report is an assessment of the nation’s economic status and recommendations for the upcoming year. The report is produced by Congress’ Joint Economic Committee and it includes writers from both the House and Senate.
The report tracks crypto’s rise over the past year, pointing out the both Bitcoin and Ethereum saw historic and monumental price increases far outpacing the roaring U.S. stock market.