France registers drop in complaints about Forex and binaries, but concerns about cryptos grow

Maria Nikolova

Last year, France’s AMF called to order 30 trading platforms – the majority of these are registered in Cyprus.

France’s Financial Markets Authority (AMF) has just published its Annual Report for 2017, marking some positive results of the introduction of the Sapin 2 law which prohibits the digital advertising of risky financial products like binary options and CFDs with high leverage.

The French regulator has been monitoring the distribution of ads of such products in order to make sure that they do not breach the law. The AMF has often recurred to instructing advertisers to take down and/or amend their ads.

In 2017, the regulator called to order 30 trading platforms. Most of them are registered in Cyprus. In the face of the law, illegal ads of toxic trading products were distributed across 140 websites.

Of the 250 ads of online trading products checked by the regulator last year, 161 were illegal and resulted in an action taken by the AMF.

But investors were less tempted to invest in such offers as compared to preceding years. The number of complaints about toxic financial products fell in 2017. There were 566 complaints about binary options and Forex products received by the regulator in 2017, compared to 1,656 in 2015. The drop was 67% when compared to 2015 levels and 48% when compared to 2016 levels.

Enquiries about speculative trading products in 2017. Blue – questions; red – complaints.

A new theme that has sparked investor concerns is bitcoin. Following the volatility of Bitcoin’s prices in the fall of 2017, the regulator has noted a rise in the number of enquiries about cryptocurrencies. The regulator says that as the complaints about binary options and Forex, as well as diamond investments drop, those about cryptocurrencies rise.

The data in AMF’s report is in tune with the results published earlier this year by France’s financial ombudsman. The Annual Report for 2017 of the ombudsman shows that the volume of complaints concerning Forex and binary options trading has fallen but concerns about fraudulent practices employed by companies engaged in this sectors remain.

The number of Forex complaints received in 2017 fell by about 50% from the preceding year, the ombudsman says, noting the positive effects of the work of the French financial markets authority AMF and the recently introduced Sapin 2 law. The ombudsman received a total 1,361 submissions (enquiries, complaints, etc) in 2017, down 9% from 2016, and issued 506 opinions, down 5% from 2016 levels.

Forex and binary options trading are among the main reasons for the complaints that the AMF ombudsman received in 2017. However, their number has markedly fell compared to 2016 levels. There were 55 files concerning Forex that the AMF ombudsman investigated in 2017 – this number reflects the cases targeting licensed companies. There were 43 cases that were transferred to prosecutors as the entities in question were not regulated.

Read this next

Retail FX

Weekly Roundup: John Oliver rips into MetaTrader, Binance to pay $10 billion

Welcome to this week’s roundup, where we delve into the latest developments in the Forex, Fintech, and cryptocurrency markets. Stay ahead of the curve with our comprehensive overview of the week’s most impactful events and trends across these dynamic sectors.

Retail FX

Lark Funding reopens to US traders, MyFundedFX picks cTrader

Canada-based prop trading firm Lark Funding announced it will once again welcome clients from the United States.

Institutional FX

Cboe FX volume falls to lowest level since summer

Cboe’s institutional spot FX platform, known as Cboe Spot, today announced its trading volume for the month ending February 2024, which took a step back after a strong rebound in December.

Retail FX

ThinkMarkets secures lucrative DFSA license in Dubai

Melbourne-based broker ThinkMarkets has secured a license from the Dubai Financial Services Authority (DFSA) after it has already incorporated its new subsidiary in the Dubai International Financial Center (DIFC).

Digital Assets

New Horizen Lays Out Its Vision Of A Modular, Proof Verification Layer For Web3 Networks

Horizen is forging a new path for the future of blockchain with its New Horizen initiative, which is building a modular Proof Verification layer that’s dedicated to verifying cryptographic proofs for any settlement layer, beginning with Ethereum. 

Digital Assets

Karma3 Labs Raises a $4.5M Seed Round Led By Galaxy and IDEO CoLab to Build OpenRank, a Decentralized Reputation Protocol

Using OpenRank, developers and web3 companies can build consumer apps where people can discover, use, fund, read, or buy something on-chain without worrying about getting spammed or scammed.

Digital Assets

Worldcoin down as Elon Musk sues OpenAI CEO Sam Altman

Worldcoin’s (WLD) token dropped following news of a lawsuit against related company OpenAI. The lawsuit was filed by Elon Musk and accused OpenAI and CEO Sam Altman of breach of contract.

Institutional FX

Exegy’s Liquidity Lamp adds intraday data to outperform S&P 500 by 31.8%

Exegy has incorporated intraday signals into its AI-powered iceberg order detection tool, Liquidity Lamp. By adding intraday data to a baseline mean reversion strategy, Exegy’s model outperformed the baseline by 10.5% and the S&P 500 (SPY) by 31.8%, respectively in the out-of-sample testing.

Industry News

Think Elon Musk backed your crypto exchange? ASIC’s latest reveal may shock you

In an absolutely shocking turn of events that nobody could have possibly seen coming, the Australian Securities and Investments Commission (ASIC) has bravely stepped forward to reveal that, yes, those videos of Elon Musk passionately endorsing a cryptocurrency exchange are as fake as a three-dollar bill.