The French financial markets authority (AMF) has presented its own “definition” of cryptocurrencies, while expressing a negative attitude towards stablecoins.
AMF explained its position on cryptocurrencies to the European Commission, defining them as “digital assets created using cryptography and functioning in a distributed registry”. However, the French regulator believes that it is not yet time to accurately classify such assets. The Agency clarified that to do this, it is necessary to distinguish between cryptocurrencies that fall into the category of financial instruments and digital assets used as electronic money.
In addition, the AMF expressed concern about the widespread use of stablecoins and believes that they can become a threat to the country’s monetary policy. The regulator stressed that it does not support the launch of the Libra stablecoin from Facebook, and is convinced that any stablecoin, regardless of its scale, must meet the regulatory requirements of all countries. At the same time, it is also necessary to “draw a line” between stablecoins, which must comply with all mandatory requirements of regulators, and ordinary payment tokens, which these requirements can only partially apply to. AMF has warned that if necessary, French government authorities can ban stable cryptocurrencies.
In addition, the Agency sees certain advantages in initial token offerings (ICOS) compared to initial public offerings (IPOs), but the regulator considers both methods risky for investors.
Recall that in December, AMF for the first time approved an ICO application submitted by a cryptocurrency startup, and in March offered to launch a regulatory “sandbox” for issuers of token shares for three years.