A small step for cryptos. The Financial Markets Authority (AMF) announced a targeted adaptation of its doctrine regarding complex financial products. This development is a direct response to the rise of cryptoassets and the entry into force, at the end of 2024, of the European regulation on Crypto-Asset Markets (MiCA). The objective is to reconcile the growing interest of investors in cryptocurrencies with enhanced protection for savers.
The key points of this article:
The AMF announced an adaptation of its doctrine in response to the rise of crypto assets and in view of the MiCA regulation.
Certain crypto assets may be marketed without a deterrent warning, under strict conditions.
The easing and the MiCA framework
Historically, the AMF judged that a financial instrument presenting 'risks of misunderstanding by a non-professional client' should carry a deterrent warning, indicating that it was too complex for the general public. The AMF now believes that certain crypto assets, under strict conditions, no longer present an 'unusual' character.
This clarification published on December 8 allows complex debt securities indexed to crypto assets, such as Exchange-Traded Notes (ETN), to be marketed without this warning, provided that four cumulative requirements are met.
With a view to protection, the AMF has therefore defined the following criteria for the easing to apply:
Custody: The custody service of the underlying crypto assets must be entrusted mandatorily to a provider that has obtained a MiCA authorization.
Quality of crypto assets: The underlying crypto assets must have a market capitalization of at least 10 billion euros and an average daily trading volume of at least 50 million euros over the 30 days preceding the marketing. Moreover, they must be tradable on a platform that has obtained a MiCA authorization.
Product structure: The financial product must not incorporate any leverage or discretionary component, ensuring a simple and direct exposure.
Nature of the exposure: Exposure to crypto assets must be done through direct holding by the issuer or through securities issued or guaranteed by regulated entities.
The AMF is reviewing its position regarding crypto assets in France.
Regulatory status and maintained vigilance
It is fundamentally important to note that these complex debt securities indexed to crypto assets are ultimately considered traditional financial instruments. They therefore fall under the European regulation on Markets in Financial Instruments (MiFID).
This classification imposes on distributors and producers the obligation to respect increased protection obligations, notably the necessity to define a target market for each product and to ensure the adequacy of the instrument with the profile and needs of the saver during the advisory.
The AMF finally reminds that, despite this easing of the doctrine and regulatory framework, these instruments remain complex products and are subject to strong price fluctuations. They are therefore not suitable for all investor profiles, and the Authority plans to conduct an assessment of this adaptation in the first half of 2027.
Through this targeted evolution of its doctrine, the AMF integrates the rise of crypto assets into the regulated financial landscape. By aligning the access conditions for certain structured products with the requirements of the MiCA regulation, the Authority seeks to establish a balance between financial innovation and the imperative of protecting savers in France.
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