French Financial Authority publishes potential crypto regulatory proposals
The French stock exchange regulator has released a series of proposals calling for more oversight and regulation that could affect the crypto market.
The French stock market regulator, the Autorité des Marchés Financiers (AMF), has put forward new proposals that could result in a greater supervisory authority for the crypto market. The organization published a notice on July 13, stating that it had published the main proposals as part of the European Commission’s consultation on prudential convergence.
The proposals offer a broad view of what the AMF would like to do in terms of oversight and regulation, but crypto could be an important part of the change. He described the objective of the proposal as allowing the European Securities and Markets Authority (ESMA) “a greater role in order to achieve harmonized and unified supervision, ensuring a level playing field while minimizing the possibility of regulatory arbitration “.
He lists four major action points in his suggestion to create a level playing field for all market players and minimize regulatory arbitrage. One of them is the centralized supervision within ESMA for new unregulated activities and “of certain categories of entities and activities due to their cross-border nature, or their significant or systemic impact” . Perhaps this could be the cryptocurrency market he is referring to, but the example given in the notice is that of European clearing houses.
Of course, none of this explicitly indicates that European agencies are considering changes to tame the crypto market. But given the general seriousness with which governments are currently examining the crypto market, it wouldn’t be impossible for European agencies to improve their game.
At the start of the year, in June, the AMF amended its general regulations and updated its policy in order to strengthen its system for combating money laundering and the financing of terrorism. It has also, like the UK’s Financial Conduct Authority, warned the public against the crypto market, but the AMF specifically mentioned crypto-derivative platforms.
Europe seeks to regulate the crypto market
Along with the US, UK, Canada, South Korea, Japan and China, EU members are currently working on how to impose regulation on the crypto market. . The market has gained enough traction and attraction from top-tier investors that the authorities have no choice but to start addressing the oversight issues. Christine Lagarde of the European Central Bank has called for global regulation of bitcoin.
Like these countries, the European authorities are considering major exchanges, of which Binance is one of the priority targets. When it comes to each country, the rules vary quite differently from country to country.
European regulators have reportedly examined stock tokens on Binance for a potential violation of securities rules. Binance argued that exchange tokens do not need prospectuses. The exchange also had to suspend payments for major European SEPA payment networks, citing events beyond its control.