France’s Crypto Derivatives Ban Decision Now Sees CFDs And Crypto Adverts Drop Months After
The advertisements and announcements of CFDs and cryptocurrency have dramatically decreased in France. This change can easily be correlated with a decision by French authorities to stop cryptocurrency derivatives from being advertised and distributed within the country.
The ruling passed by the French Autorité des Marches Financiers (AMF) had noted that the brokers involved with them must work with certain regulations. Any firm that wanted to be considered would need to get approval from regulators and maintain good behavior. However, there was no room for error with advertisements, regardless of whether it was a token or a product.
On Friday, AMF noted that the ads had been reduced to only 25% of what it once was from January to September this year. Market shares took a substantial hit during this time, going from 23% to 12% involving cryptocurrency, ICOs, and related blockchain products.
This is one of the first decisions of this kind by a regulator involved with the EU, considering that the regulators in France noted that any financial product from a cryptocurrency are considered derivatives. As such, the assets would need regulation, and trading platforms would need authorization to promote their assets. Even though the legality of their categorization is to be debated, there has not been much support from regulators to define them as an actual asset, whether it is a commodity or cryptocurrency itself.
The rules have not been clear for the pan-European region, which is primarily because of the lack of legislation. However, there has been many individual efforts from regulators in Europe to pursue trading venues without permission to offer their services. ESMA, for example, has already suggested that restrictions for retail investors involved in CFDs, including regulatory measure against the maximum leverage available.
By April this year, the French government had already initiated a tax reform plan. The plan ended up reducing the rates that investors pay on their crypto revenues, bringing it down from 45% to 19%. These effects come up at the same time that France decided to classify Bitcoin and related assets as “moveable property.” Before the reclassification, these profits were referred to as ‘industrial and commercial profits,” while occasional investors were to call their gains “non-commercial profits.”