French regulator warns against unauthorized crypto platforms

The French stock market regulator, the Autorité des marchés financiers (AMF), continues to monitor the cryptocurrency market to warn investors of unauthorized crypto services.

On October 1, the AMF updated its web portals identified as offering crypto and currency (forex) investments through unauthorized entities. The list included four websites related to cryptocurrency derivatives investing as well as 12 forex-related sites.

According to the regulator, listed entities offer investment products without being authorized to provide such services. In order to protect investors from potentially fraudulent investments, the AMF and the Prudential Control and Resolution Authority (ACPR) regularly update the blacklist of unauthorized lenders. However, these lists are “not intended to be complete” because “new unauthorized entities appear regularly”.

The authority strongly recommended that investors follow the list of approved investment providers using the online register of financial service providers as well as the list of approved providers in the categories of financial investment advisor or crowdfunding.

The latest AMF warning comes shortly after Paris-based derivatives fund manager Melanion Capital launched a Bitcoin (BTC) exchange-traded fund (ETF) in August. Melanion CEO Jad Comair reportedly said AMF approval of the fund was “a real challenge given the sensitivities and politics currently surrounding investments in Bitcoin and Bitcoin.”

Related: South African financial regulator warns against Binance

Global authorities have recently increasingly expressed concerns about unregulated crypto investment services.

In mid-August, the Australian Securities and Investments Commission advised citizens to invest in crypto only through financial institutions that hold an Australian financial services license. According to the Australian Competition and Consumer Commission, crypto scams accounted for over 50% of losses for Australian investors in the first six months of 2021.

Earlier this year, Banque de France Governor François Villeroy de Galhau urged Europe to prioritize crypto regulation due to the risk that digital assets could challenge its monetary sovereignty.