The Autorité des marchés financiers (AMF) Ombudsman in France has expressed concern over a substantial rise in mediations related to cryptocurrencies.
As revealed in the recently published 2022 annual report, the number of mediation requests linked to digital assets surged from 44 to 54, while the cases deemed admissible increased from six to 17.
Concurrently, the count of registered digital asset service providers (DASPs) more than doubled, growing from 28 to 59.
This significant increase in crypto-related mediations has prompted the AMF Ombudsman to address the mounting challenges in the industry. Although the overall number of cases decreased slightly, the surge in mediation requests highlights the need for robust regulations and safeguards to protect investors’ interests.
It is worth noting that the AMF Ombudsman can only mediate cases involving registered DASPs or those that have received optional approval from the AMF for specific instances like initial coin offerings.
Compliance with AMF registration is obligatory for providing custody services, trading digital assets for legal tender, conducting digital asset trades, or operating a digital asset trading platform within France.
To address these concerns, the AMF plans to tighten DASP registration requirements in July before the European Union’s Markets in Crypto-Assets (MiCA) legislation takes effect next year. This move aims to establish more stringent guidelines for DASPs and ensure a secure environment for market participants.
While the AMF Ombudsman’s focus remains on mediating disputes rather than intervening in scams, the report emphasized addressing misunderstandings related to staking and clarified its role in handling such issues.
The surge in crypto-related mediations and the rapid growth of registered DASPs highlight the urgent need for comprehensive regulatory measures. Striking the right balance between innovation and investor protection is vital for fostering a resilient and trustworthy crypto ecosystem in France.
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