Substantial Increase in Crypto-Related Mediations and Service Providers
The French stock market regulator, the non-governmental Autorité des marchés financiers (AMF) ombudsman, has reported a marked rise in mediation requests related to digital assets. Over the course of a year, the number of these requests increased nearly a quarter, and concurrently, the number of digital asset service providers (DASPs) more than doubled.
AMF Ombudsman’s 2022 Report: Spotlight on Digital Assets
In its 2022 annual report, the AMF ombudsman dedicated a section to digital assets for the first time. Although the total number of cases handled by the ombudsman decreased from 1,964 in 2021 to 1,900 in 2022, the cases concerning digital assets grew from 44 to 54, with the admissible cases increasing from six to 17. The report also noted a significant rise in the number of registered DASPs from 28 to 59.
Understanding AMF’s Role and Limitations in Crypto Mediations
The AMF ombudsman is limited to mediating cases where the DASP is registered with the AMF or if the AMF has granted optional approval in instances like initial coin offerings. A DASP must register with the AMF to provide services such as custody for third parties, buying or selling digital assets for legal tender, trading digital assets for other digital assets, or operating a digital assets trading platform in France. There are currently no licensed DASPs.
Changes on the Horizon: Upcoming DASP Registration Requirements and MiCA Legislation
The ombudsman’s report revealed that DASP registration requirements will undergo tightening in July, ahead of being replaced by the European Union’s Markets in Crypto-Assets (MiCA) legislation next year.
Navigating Scams and Common Misunderstandings
The AMF ombudsman highlighted that it does not intervene in “scams,” which could fall under regulations for crypto assets or, in cases of derivatives, under the Markets in Financial Instruments Directive (MiFID II). It was also reported that a frequent issue managed by the ombudsman was misunderstandings around the terms of staking.
