The French Securities and Exchange Commission has published a number of proposals calling for increased supervision and regulation of the crypto market.
In June this year, the AMF changed its policies and general rule to improve its anti-money laundering and counter-terrorism funding framework. There was also a public warning about the crypto market, like the Financial Conduct Authority in the UK, even though the AMF specifically mentioned crypto derivatives platforms.
A new proposal for crypto control
The Autorité des marchés financiers (AMF), France’s stock exchange regulator, has put forward new proposals that could give the crypto market more regulatory powers. The organization announced on July 13 that it had published important ideas in response to the European Commission’s supervisory convergence consultation.
The proposals provide a broad overview of what the AMF intends to achieve in terms of oversight and regulation, but cryptocurrency could play an important role. According to the document, the plan aims to give the European Securities and Markets Authority (ESMA) “a greater role in ensuring harmonized, uniform supervision, ensuring a level playing field while avoiding the possibility of regulatory arbitrage”.
The EU members are now working with the US, UK, Canada, South Korea, Japan and China to regulate the crypto market.
Now that the market has gained enough traction and support from major investors, the authorities have no choice but to address the regulatory issues. Christine Lagarde, the head of the European Central Bank, has called for bitcoin to be regulated globally.
European authorities, as in other countries, are investigating large exchanges, with Binance being one of the most prominent targets when it comes to each individual country. The rules differ significantly.
Important actions listed in the proposals
It proposes four key action points to ensure a level playing field for all market participants and to reduce regulatory arbitrage. The centralized control of ESMA over new non-regulated activities as well as “special categories of organizations and activities due to their cross-border character or their significant or systemic impact” is one of them.
It is possible that this is referring to the Bitcoin market, but the example of the notice is European clearinghouses. Of course, nothing suggests that European regulators are planning any action to regulate the cryptocurrency market.
However, given the seriousness with which governments are now examining the crypto market, it cannot be ruled out that European agencies are stepping up their game.
European regulators are reportedly investigating share tokens on Binance for possible securities law violations. According to Binance, share tokens do not require a prospectus. In addition, due to events beyond its control, the exchange had to stop payments for the large European payment network SEPA.