The Autorité des Marchés Financiers (AMF), a French stock market regulator, continues to monitor the cryptocurrency sector and has advised investors to only invest in crypto through authorized services listed on official websites.
AMF amended its online portals on Oct. 1 that had been recognized as selling cryptocurrency and foreign exchange (FX) investments through unlawful businesses. Four websites relating to bitcoin derivatives investments were included in the list, along with 12 forex-related sites.
The listed firms, according to the SEC, have been offering investment products without being permitted to do so. The AMF and the French Prudential Supervision and Resolution Authority (ACPR) update the blacklist of prohibited investment providers on a regular basis to safeguard investors from potentially fraudulent investments.
Those listings, however, are “not intended to be full” because “new unlawful entities appear on a regular basis.”
The authorities strongly advised investors to check the online register of financial service providers for a list of authorized investment providers, as well as the list of authorized in the financial investment advisor or crowdfunding categories.
The AMF’s latest warning comes only a few months after Melanion Capital, a Paris-based derivatives fund manager, launched a Bitcoin (BTC) exchange-traded fund (ETF) in August.
According to reports, Melanion CEO Jad Comair stated that getting the fund approved by AMF was “a major difficulty” due to the “sensitivities and politics now surrounding Bitcoin and Bitcoin investing.”
Recently, governments around the world have become increasingly concerned about unregulated crypto investing services.
The Australian Securities and Investments Commission recommended citizens to invest in cryptocurrency only through financial institutions with an Australian Financial Services license in mid-August.
Crypto scams accounted for more than half of Australian investors’ losses in the first six months of 2021, according to the Australian Competition and Consumer Commission.
Earlier this year, Bank of France governor Francois Villeroy de Galhau urged Europe to prioritize crypto legislation because digital assets pose a threat to the country’s monetary sovereignty.
