France’s crypto derivatives rules could be EU template

Author: Olly Jackson | Published: 8 Mar 2018

France is the first European country to regulate cryptocurrency derivatives in a move that could signal a whole raft of inter-jurisdictional regulation for this sector. But attempts to limit retail investors from entering the highly volatile market could fail as the new rules provide legal certainty and investor protection.

With more cryptocurrency regulation inevitable in the coming months, this could prove to be an important test case and a strong indicator as to which way the rest of Europe will turn.  

France’s Autorité des marchés financiers (AMF) announced February 22 that cryptocurrency derivatives should be regulated just like any other financial instrument and therefore online platforms offering these are included under the new Markets in Financial Instruments Directive (Mifid II). As well as offering greater transparency and reporting requirements, this also means the products cannot be advertised via electronic means under France’s Sapin 2 law – which aims to provide transparency, reduce corruption and modernise the...