The French financial markets regulator AMF has updated an investment blacklist, adding 11 forex and cryptocurrency brokers to its list. These brokers are not authorized by the French AMF, but solicit and offer relevant trading services to investors.
As in most countries with a well-regulated system, such as the UK, any financial investment services entity or individual carrying out trading and investment business such as foreign exchange, CFDS and cryptocurrencies in the French jurisdiction must obtain an AMF authorization, otherwise it will not be allowed to expand its business.
Of the 11 Forex and cryptocurrency brokers listed by the French AMF, there are 9 forex brokers and two cryptocurrency companies:
– www.bitworldfx.com
– www.brightfinance.co
– www.daxbase.com/fr
– www.daxioma.com/fr
– www.fortiscapitalmanagers.com
– https://fr.uptos.com
– www.investisafe.com
– www.lvMEXchange.com/fr/
– www.wavetomarkets.com
– bitcoin-storm.com/fr
– cryptolegacypro.com/fr
The AMF said the unauthorised websites or brands listed above are available on the AMF website, and the regulator stressed that these areas could change quickly and the list was not meant to be complete. In addition to such warnings as France seeks to regulate the cryptocurrency space, the industry regulator has also approved initial coin offerings (ICOs) in the country, in addition to the publication of new rules regarding the licensing of digital asset service providers.
As early as 2016, the French AMF required retail brokers to adjust their operations and all online forex and binary options advertising would be banned. At the same time, the AMF has also issued new requirements for trading contracts for Difference (CFDs), which brokers can only continue to offer if certain conditions are met.
The AMF said all brokers operating in France must provide a guaranteed stop loss on client positions, as well as negative account protection. Before opening a position, the client must introduce a stop loss; After the trade is executed, the client cannot extend the stop loss. These measures help to limit the client's losses to the original investment.
On November 8, 2016, France officially adopted the law known as Sapin 2. The bill prohibits all investment service providers from directly or indirectly marketing certain financial instruments online to non-professional investors through electronic means such as email, online advertising, video or audio, primarily very complex and potentially high-risk financial instruments that are traded in unregulated markets.
According to the AMF's regulatory definition, financial instruments that are prohibited from conducting online marketing activities include binary options contracts, foreign exchange and CFDs transactions with leverage ratios of more than 1:5.
