French Market Regulator Warns Against Some Cryptocurrency Providers

Cryptocurrency in France Warning

The Autorité des Marchés Financiers (AMF) recently published a warning to the public about unauthorized cryptocurrency firms, adding four more websites to its list of crypto companies providing illegal investment services to French clients.

The firms added by the AMF to their blacklist include the following:

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

The AMF has been very active in its policing of crypto activity. In addition to these warnings, the AMF announced last February that it is banning advertising and distribution of cryptocurrency derivatives.

The details of the current advertising ban are readily available and in place, but the update from the AMF noted that the promotion of cryptocurrency derivates demands that brokers offering these products must comply with government regulations.

Additionally, the AMF now requires brokerage firms to get approval from the regulator before offering such contracts and adhere to moral behavior.

The AMF announced that the full list of unauthorized cryptocurrency sites is available on their website. The government agency also says these domains may change quickly and that the list is not meant to be exhaustive.

All financial intermediary offerings, or recommending investment must be on the list of financial institutions allowed to do business in France. The list is available at www.regafi.fr. Meanwhile, the list of authorized intermediaries in additional investor advisor categories is found at orias.fr/search.

This April, the government of France announced a tax reform plan. The plan reduces the tax rate on revenues generated by cryptocurrency transactions. The reform plan also cuts the high-band rate from 45 to 19 percent.

The tax cuts come at a time when France changed the classification of bitcoin and other cryptocurrencies, which as fo now fall under the “moveable property” category, which means cryptocurrencies are subject to the flat tax rate of 19 percent on capital gains. Prior to this change, cryptocurrencies were considered “industrial and commercial profits” while occasional transactions were categorized as “non-commercial profits.”‎

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