France’s AMF receives 2,261 enquiries about crypto-assets in first 10 months of 2018

Maria Nikolova

The majority of cases concern fraudulent offers of investments in cryptocurrencies rather than ICOs.

The investor info center of the French Financial Markets Authority (AMF) received 2,261 enquiries about crypto-assets in the first 10 months of 2018. The data comes from an analysis of the ICO market in France, published by the AMF today.

Whereas the regulator confirms that there are concerns about crypto fraud, in most the cases complaints concern fraudulent investments in cryptocurrencies rather initial coin offerings (ICOs). They remain a rather marginal method of financing, having generated EUR 19.4 billion since 2014. France represents a minor part of this market, with 15 ICOs having generated EUR 89 million.

The French regulator notes that meager 6% of the tokens display characteristics of financial instruments.

ICOs come with their risks. These include absence of price transparency, as well as risks of cyber attacks.

Although some institutional investors (hedge funds) have started to invest in ICOs in certain jurisdictions, the majority of traditional institutional investors steers clear from these offerings. Overall, the AMF concludes that the number of investors in tokens is quite small.

Regarding the risks concerning crypto-assets, and cryptocurrencies in particular, the French regulator has started publishing a black list of fraudulent cryptocurrency platforms. Currently, 74 such platforms are suspected of making fraudulent solicitations.

A recent AMF Newsletter has provided some information about crypto-asset ads. During the first nine months of 2018, these accounted for 12% of the ads of investment products. The percentage is higher than the level of below 3% for 2017.

Advertisements of CFDs and other highly speculative online trading products accounted for 24% of all the investment ads in France in the first nine months of 2018. This is way below than the higher share seen in previous years. Until 2016, the share of these ads was around 50%. Also, the ads for such products had become more restricted in their content and now focus on offers permitted under the Sapin II law. This law prohibited digital advertising of all sorts of high-risk products, including CFDs with high leverage.

  • Read this next

    Digital Assets

    Celsius founder Mashinsky agrees to shared lawyers with Sam Bankman-Fried

    Former Celsius CEO Alex Mashinsky has addressed potential conflicts of interest in his legal representation during a brief hearing in a New York courtroom.

    Digital Assets

    Sam Bankman-Fried captured in first jail photo

    Sam Bankman-Fried, the once-billionaire founder of FTX, has been spotted looking quite different with a new beard and a slimmer figure in a photo that’s been making rounds, reportedly taken inside New York’s Metropolitan Detention Centre.

    Market News

    Bitcoin stalls at $53,000 level, Ethereum reaches $3,000

    Bitcoin (BTC) faced renewed resistance at the crucial $53,000 level on Tuesday, indicating that the primary cryptocurrency is likely to continue consolidating before making its next decisive move.

    Digital Assets

    UK targets new laws for stablecoins and crypto staking within six months

    The United Kingdom is gearing up to enact fresh legislation regulating stablecoins and crypto staking within the next six months.

    Web3

    Masa’s Milestones Before Mainnet Launch

    Since its launch in August 2022, Masa, the premier decentralized network for personal data, has experienced rapid growth, securing over 1.2 million unique wallets and accumulating more than 23 million data points. Despite a bear market, the network has attracted over 40,000 node operators to its testnet within just 18 months.

    Digital Assets

    Web3 Greatest Startup Competition Hits $10M in Prizes

    We’re thrilled to announce the return of the highly anticipated Startup Competition at Paris Blockchain Week. With a staggering array of prizes totaling over $10 million, encompassing funding, grants, credits, accelerations, listing, and more, this competition has become a cornerstone event within the blockchain startup ecosystem.  

    Digital Assets

    Hedge fund Tyr Capital faces dispute over exposure to FTX

    Crypto hedge fund Tyr Capital found itself embroiled in a dispute with one of its clients concerning its investment exposure to the bankrupt digital assets exchange FTX, as reported by the Financial Times on Tuesday.

    Retail FX

    Plus500 revenue down to $725 million, unveils $100M share buyback

    Israeli-based, but London-stock market listed Plus500 Ltd (LON:PLUS) today reported its 2023 results, which came “significantly ahead” of analysts’ estimates.

    Education

    Strategies for Profiting from Interest Rate Fluctuations

    The world of Forex trading is a complex and dynamic domain where interest rates play a pivotal role in shaping currency values. Octa’s team of financial experts delves into this intricate relationship, providing traders with a comprehensive understanding and strategies to harness economic indicators for enhanced trading performance.

    <