French Regulator Cracks Down on Crypto Influencer Captain Tradin

by time news

France ‍Battles Crypto Influencers and Unregulated Platforms

France, known ​for its stringent cryptocurrency regulations, is facing a growing challenge: the proliferation of unregulated platforms and‍ influencers ‌promoting risky investment‍ strategies.‌

The latest example ⁣involves a ⁣French YouTube channel with over​ 62,000 subscribers, advising viewers on cryptocurrency investments.The ⁣channel, run⁤ by a Spanish company, was recently ordered by the‍ French Directorate General for Competition, Consumer Affairs and the Repression of Fraud (DGCCRF)​ to ​remove links to Bitget, an ⁣unauthorized trading platform​ operating illegally in France. Bitget allows users to bet small sums and speculate on substantially ⁢larger ⁤amounts, attracting ⁤those seeking quick riches.This case​ highlights the difficulty French authorities face in regulating the crypto ‌space. ⁣While France ​boasts some of the world’s strictest cryptocurrency ‍regulations,​ the decentralized nature of cryptocurrencies and the use of foreign platforms pose significant hurdles.

Thousands of self-proclaimed ⁣experts‌ on social media platforms like YouTube, Instagram, and TikTok offer⁣ advice on investing in one of the ⁣9,000+ cryptocurrencies available. These influencers often use​ compelling graphics and promises of ⁤quick returns to lure in unsuspecting investors. Some⁢ even promote cryptocurrencies based solely on celebrity names,such ⁣as “Trump Coin” or “Hawk Tuah,” further⁣ blurring⁤ the lines between legitimate ​investment‌ and outright scams.

Since June 2023, the DGCCRF has been actively targeting influencers promoting unauthorized products, even⁢ those based ⁢abroad, who target French consumers. Violators face‍ hefty fines of up to €100,000.

The Financial Markets Authority (AMF) ⁢has also taken steps to‌ combat the proliferation of unregulated platforms.⁤ In 2022, the AMF ⁢created a “Black List” ⁢of‍ 5,000 unauthorized‍ platforms⁣ and offers. However, a “White List”⁢ of authorized platforms remains⁢ limited, with only a handful of sites‌ meeting the ‌stringent ⁣requirements.The European union’s Markets in Crypto-Assets (MiCA) regulations, inspired‌ by French practices, came‍ into effect in ‍December 2023, further⁢ strengthening⁤ the ⁣regulatory ⁤framework.

Despite⁣ these efforts,⁤ financial scams targeting cryptocurrencies have surged since mid-2023. The average ⁤reported loss ​amount‌ for all scam themes combined reached ‌€29,000 ​by the end of⁣ November, according to the ⁤AMF.

French ‍crypto Market Struggles as Users Flock to Foreign Platforms

A growing number of French citizens are turning​ to foreign cryptocurrency platforms, leaving‌ the domestic market struggling to ‌compete. This trend, according to​ industry experts, is fueled by stringent⁤ regulations and high compliance costs ⁣that⁤ are pushing‌ French companies out of the market.

A recent survey by‌ BVA XSight,​ commissioned by the French‍ financial⁤ markets authority (AMF), revealed ⁣that 3.2% of ⁢French⁢ adults have⁢ fallen victim ⁣to‍ financial investment scams, a threefold ⁤increase from 2021.The survey‌ also⁢ highlighted a concerning trend among young men, ​with 45% of those likely to be scammed falling within the under-35 male demographic. This group appears especially ‌susceptible⁢ to get-rich-quick schemes often‍ promoted in⁤ the cryptocurrency space.

Adding⁤ to the complexity, a 2024 Ipsos KPMG study found that 12% of French people now⁢ hold cryptoassets, a significant jump⁤ from 9.4% the previous year. This surge in adoption is largely driven by younger generations, particularly ⁢men, who are drawn to the perceived ease of access and anonymity offered⁢ by decentralized‍ platforms.

Alexandre Stachchenko, CEO of Paymium, the only French cryptocurrency exchange​ registered⁢ with the AMF,⁢ expressed his ⁣frustration with the current situation. “Today,⁣ the French​ favor platforms located⁤ outside‍ of France,”⁣ he stated. “With⁤ just three or four foreign platforms,⁢ we already account⁢ for 70% of owners.” ‌Stachchenko believes that the‌ AMF’s stringent regulations,⁤ designed to ‌protect consumers, have inadvertently stifled the ‌growth of the ​French crypto ecosystem.

“We prioritized standards above all else, wanting to⁤ protect consumers,” Stachchenko lamented. “But we didn’t realize that these standards ​would kill the ​French ecosystem. We are the only exchange platform⁢ left in France because the others have either shut down or given up.”

He further pointed out ⁤the significant financial burden imposed by the⁣ MICA regulations, which ​require companies to invest one million euros to comply. This barrier to entry has⁤ effectively ​priced out many smaller players, leaving the market dominated⁢ by foreign giants.

hasheur, a prominent cryptocurrency ⁤influencer in France, echoed Stachchenko’s⁣ concerns.⁣ “The regulator prohibits hazardous‍ practices, but suddenly, the French will do it among the Americans,” he remarked. “We try to⁣ protect consumers from themselves, but the ‍result is that they ignore the French market and turn to ‍international platforms. So the user runs approximately‍ the same risk, and we only silence the French companies.​ It’s unbalanced ⁢and unfair.”

You may also like

Leave a Comment

Statcounter code invalid. Insert a fresh copy.