Four Cryptocurrency Websites Get Blacklisted By French Financial Regulators 

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One of the major obstacles for the adoption of cryptocurrencies is regulatory uncertainty. There are many institutional investors who would have invested in the industry if there was a clear and favorable regulatory framework available. While some countries are making regulatory advancements to aid the industry, others have strict policies against it. On the other hand, some parts of the world regulate cryptocurrencies with the same agencies that regulate securities and other traditional assets.

French Financial Institutions And Cryptocurrencies

In France, the same agency that monitors the traditional stock market is responsible for regulating cryptocurrencies. It is known as the AMF – the Financial Markets Regulators. This body recently blacklisted four cryptocurrency related websites. These websites have been accused of offering unregistered investment offerings. This is according to their official statement that was released yesterday.

The AMF said that nine companies have been blacklisted for operating without getting the required regulatory approval. Out of those nine countries are four cryptocurrency related firms. The AMF warned investors not to invest in projects that are unregistered. They stated that there has been an increase in the number of unregistered actors and most of them operate like they are authorized making it difficult for investors to know.

The websites that were blacklisted are iminage.com, infoconso.info, elos-patrimoine.com, live-crypto.com.net. The website, Elos-patrimoine.com, states that it offers risk-free cryptocurrency investment. It promises to provide professional support irrespective if the chosen area of investment. The company claims to have been the manager of the European heritage for more than 15 years. The website also promises investors monthly returns of 3 to 5%.

Of the other five websites that were blacklisted, four were related to the wine industry while one was a diamond investment website.

About AMF

The AMF is the independent public organization that is incharge of maintaining an orderly financial market and protecting investors. Last month, the agency participated in an initiative with the central bank of France. It was aimed at educating the public on the possible risks attached to trading speculative assets like cryptocurrencies.

That same month the company released a report that claimed the ICO sector in France represents a minor part of the global ICO market. Since the year 2014, the market has accrued up to 19.4 billion euros. Out of this number, 89 million euros were raised in France by 15 projects.

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The AMF did not give any details regarding how long the blacklist will hold or what action will be taken against the founders of this website. One thing is certain and this is the fact that the regulators have the interest of the investors at heart. However, the disadvantage of this kind of regulation is that there is no separate body meant for focusing on cryptocurrencies. Instead, the regulators of the traditional financial markets are the ones regulating cryptocurrencies in France. This can hinder adoption and development in the long run.

The only way to regulate without hindering adoption is to create an entirely new framework to guide the cryptocurrency industry. Before this can happen there must be a consensus in the definition of cryptocurrencies on a global scale. When regulators have decided what asset class cryptocurrencies fall under, they can regulate the industry more efficiently.

Ufuoma Ogono is a cryptocurrency writer with over 3 years experience in the cryptocurrency industry. She dedicates her time to sharing valuable information to members of the cryptocurrency community.

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