French Stock Market Regulator AMF Blacklists Dozens of Cryptocurrency Sites
The regulatory state of crypto hangs continually in the balance.
As the currency and asset class continues to grow and develop, countries all over the world are scrambling to create a complex framework with which to regulate and industry that they might not even fully understand. Countries such as the United States and France have an exceptionally difficult time creating such a framework, especially when one considers the extreme variation in regulatory authorities and power structures inside of their vast governments.
This week, French crypto market participants got yet another glimpse into the potential future of the cryptocurrency space within the country. The French regulatory authority AMF, or Autorite des Maches Financiers, announced today that it would be blacklisting a list of 21 new sites classifying themselves as investment websites. The decision comes with the caveat that the agency will continue to add more names of sites to the growing list, a list which the authority is quick to call “nor comprehensive.”
The newest update to the unfortunate blacklist comes just months after AMF added fifteen new websites to their list. March yielded the fifteen names, along with an official warning to consumers regarding the risks associated with investing in cryptocurrency—especially when their favored investment sites display significant risk factors and sketchy backgrounds.
A Global Trend
France is not alone in the regulatory trend of blacklisting sites perceived to be problematic to the general health of consumers and the economy. A Belgian watchdog called the Financial Services and Markets Authority, or the FSMA, has been maintaining its own blacklist which now consists of 28 new websites, as of the 26th of September. Additionally, the Belgian authority has issued numerous warnings to consumers on the market concerning the fraudulent nature of many projects within the growing and inclusive crypto space.
While the United States might not have such a list officially on the books, it and other first-world countries are quickly establishing task forces to look into the realities behind some of the biggest crypto scammers currently on the market. Because the industry is so new and things can change so quickly, regulators must act with decisiveness to respond to cases of fraud on the blockchain.
France’s New Rules
It has been a big month for regulators in France. The AMF was granted the legal authority to grant its own licenses to Initial Coin Offering (ICO) companies. According to the Finance Minister of the country, the new legal framework could set the foundation for a more booming investment economy, attracting “investors from all over the world” to France to help boost the economy and growing crypto ecosystem.
This wish reiterates a relatively common trend within groups of regulators all over the country. While it may seem that crypto startups would want to avoid being hit with regulations as much as possible, the reality is that most companies on the blockchain would like nothing better than to have a sophisticated regulatory authority with a comprehensive framework for regulation.