EU improves crypto competitiveness – France opens ETNs to private investors
- France has eased restrictions on crypto ETNs by removing the requirement for warning labels.
- Similar moves have already taken place in the UK and Scandinavia and are fueling the growth of the ETN market in Europe.
On December 9th gab the French financial market regulator AMF known the restrictions on exchange-traded crypto bonds for private investors have been relaxed. The authority will amend its rules, in this case AMF position 2010-05, which will eliminate the previously mandatory warnings on ETN products.
France is aligning its national laws with the EU and expanding retail investors’ access to digital investment products, opening up new market opportunities for millions of retail investors and asset managers like CoinShares.
A bill in favor of cryptocurrencies has been on the table since October to better integrate Bitcoin and stablecoins into the French economy. In addition, a national Bitcoin reserve is being discussed in France. This will encourage the use of Euro-based stablecoins in everyday transactions and support domestic crypto mining.
As CNF reported, European banks are working together to launch Qivalis, a euro-backed stablecoin, to strengthen Europe’s control over digital payments. However, the bill is not a sure-fire success due to limited parliamentary support.
France’s move comes months after lifting its long-standing ban on retail crypto ETNs – CNF reported. This opened the doors to up to 7 million new crypto customers.
This regulatory move is crucial as the European crypto market has suffered from fragmentation. Large differences in regulation had hindered widespread acceptance and put the EU at a disadvantage compared to the better conditions in the USA.
That was done with that Official entry into force of the MiCA Regulation – Markets for Crypto Assets – beends. The regulatory changes made in Europe will expand the market for crypto ETNs. Europe has already seen inflows of €2.5 billion since the start of the year, with key markets such as the UK, France and Scandinavia representing tens of millions of active retail investors.
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