France is behind cryptocurrency, introducing regulations to allow the ecosystem to mature as it should and even pushing the European Union to adopt those same regulations. Many companies across the country have begun to explore crypto and blockchains on a larger scale than what is seen in other locations and the results are exactly what should be expected. Regulators in the country are seeing an increase in crypto claims.
According to a report published by France’s Financial Markets Authority (FMA) this past Tuesday, the number of claims about crypto assets has increased substantially since July of last year. However, this is not a bad thing, as it produces several positive results. There is greater crypto adoption, more people are more aware of how it works, more entities are being held accountable for their actions and a reduction in complaints is going to follow as crypto operators wise up.
As complaints have increased, the number of inquiries received by the FMA about crypto has dropped, providing further evidence to the improved education on the Bitcoin ecosystem. The FMA also points out that there continues to be more interest on the part of investors to see crypto investment products, such as binary options, contracts for difference, etc. However, generally speaking, the number of requests for these products has dipped.
The AMF issued 118 warnings to crypto entities from 2016 to 2018. The total number of warnings it issued to entities across all sectors during the period was 154.
A report released by the group this past May indicated that there was a surge of 14,000% in the number of inquiries related to fraudulent crypto offers during that same timeframe. In 2016, there were only 18 inquiries, but this climbed to 2,600 in 2018. Of course, when comparing the coverage period, crypto didn’t have nearly the awareness in 2016 that it had last year following Bitcoin Core’s explosion in 2017.
The Bitcoin ecosystem is rapidly maturing. It has gone from a complete “Wild West” atmosphere where virtually anything was possible in 2018 to a more controlled and regulated environment this year. This type of evolution is not typical in any global industry and shows how important and viable digital currencies are on an international stage.
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