French Authority’s Actions on Crypto and Binary Options to Prevent frauds

Of late, the French authority, has joined the other regulators from different geographies to impose stringent norms on crypto and binary options. 

New York Federal Court, recently instructed, the renowned binary options, cryptocurrency platform Blue Bit Banc, Blake Kantor to take websites down for indulging fraudulent activities.

While the CFTC had also secured a preliminary injunction against a number of individuals and firms engaged in a fraudulent scheme involving binary options and digital currencies.

Blake Kantor, who is the CEO formerly operated a binary options company known as Blue Bit Banc and Blue Bit Analytics (“BBB”), pleaded guilty to conspire the binary options scam and also involved a crypto fraud scheme. 

France’s financial markets regulator, the Autorité des Marchés Financiers (AMF), has now, highlighted the several unregulated FX, ‎binary options and cryptocurrency brokers representing their offering under several brands. The blacklisted firms have been providing professional ‎investment services to domestic clients without proper authorization, which is a criminal offense.

The regulator has been quite active in policing crypto activities, they had also warned that it is forbidding the advertising and distribution of cryptocurrency derivatives back in February.

The distinguished facts about the wholesome prohibition of advertising on certain offerings are all in place, however, the update notes that promoting cryptocurrency derivatives demands that brokers that are offering such products should ensure the adherence of required regulations.

Meanwhile, the recent cautionary notice evidences that binary options business remains a significant source of fraud in Europe, and while many of these firms on the AMF’s blacklist claim to be based in France, but most of the addresses provided are false and the firms are actually based overseas.

AMF says that these companies might be running scam operations, and so they have not received licenses to trade with French clients. Such firms have also been found guilty of unsolicited calls and sending out similar emails to locals regarding online trading, financial consultation, and credit without gaining the necessary approvals.

Currency Strength Index: FxWirePro's hourly BTC spot index is flashing at -29 levels (which is bearish), hourly USD spot index was at 49 (bullish) while articulating at (05:58 GMT). 

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