French Regulator AMF Updates Warning on Illegal Cryptocurrency Companies

Omar Faridi
  • Autorité des Marchés Financiers (AMF), the French financial markets regulator, has added four more companies to its growing list of illegal crypto-related businesses.
  • The AMF introduced tax reforms in February this year, which basically lowered taxes that cryptocurrency traders and businesses had been required to pay.

The Autorité des Marchés Financiers (AMF), France’s financial regulatory authority, announced on Monday that investors should be wary of unlicensed cryptocurrency businesses. The independent financial markets regulatory authority identified four additional crypto-related firms that are reportedly offering illegal investment and financial services to locals.

The AMF published the following updated list of websites, while indicating that they were operating illegally:

  • https://www.bitoraxe.com/
  • https://connect-coin.fr/
  • https://www.solutioncrypto.com/
  • https://www.solution-crypto.com/

A complete list of prohibited websites can be accessed through AMF’s official website. The regulator noted that the website domain names could change frequently and that domains listed don’t necessarily constitute a complete list of illegal or questionable crypto businesses. In order to determine whether a cryptocurrency company or website is legitimate, according to the AMF, users can visit www.regafi.fr.

Warnings Against Cryptocurrency Derivatives

The AMF has notably been vocal and involved in monitoring cryptocurrency-related businesses. Not only has the regulator issued several warnings, it has also moved toward banning the promotion and issuance of cryptocurrency derivatives in February of this year.

Reportedly, the AMF has clearly outlined the details regarding its advertising ban on various crypto-related activities. The regulator has also instructed brokers offering cryptocurrency derivatives to adhere to its regulatory requirements. Moreover, the AMF has made it mandatory for brokers to obtain permission before providing crypto derivatives contracts.

Back in April, the French government introduced a number of tax reforms which lowered taxes on crypto-related revenue, in addition to reducing the high-band rate to 19 percent (originally 45 percent). Notably, France has classified Bitcoin (BTC) and other cryptocurrencies as “movable property”, which requires only a flat 19 percent tax be paid on capital gains. Prior to this change, capital gains from cryptocurrency investments were classified as “industrial and commercial profits.” Those engaging in just a few cryptocurrency transactions had been put under the bracket of “non-commercial profits.”