France's financial markets regulator, the AMF, has announced that the ban on electronic advertising of forex and binary options products, also extends to the recently appeared derivatives with
cryptocurrencies as an underlying asset.
According to the FSMA, some of these platforms also offer other financial products with
cryptocurrencies as their underlying asset, such as savings accounts with promised guaranteed returns, servicing rights or derivative products such as CFDs.
Not exact matches
That said, products linked to the value of
underlying digital
assets, including bitcoin and other
cryptocurrencies, may be structured
as securities products subject to registration under the Securities Act of 1933 or the Investment Company Act of 1940.
As cryptocurrencies tend to instability without an
underlying asset, an upshot firm claims to have it both ways.
ICOs raise funds from the public using virtual currency (
cryptocurrency) in exchange for their holders receiving proprietary coins or tokens related to a specific venture or project
underlying the ICO, such
as rights to profits, shares of
assets, or rights to use certain services provided by the issuer or voting rights.
«We've come to understand that
cryptocurrencies as an
asset have exhibited clear and
underlying resiliency and have integrated themselves
as part of a diversified and balanced portfolio,» Robinhood CEO and co-founder Vlad Tenev told CoinDesk.
Abra uses bitcoin
as the
underlying asset for extending your investment into other
cryptocurrencies.
Warning that the use of bitcoins
as an investment tool is limited because there is no
underlying asset and the virtual currency is subject to high volatility, the central bank said speculators are at risk,
as they would have no legal recourse if there is a loss of confidence in the
cryptocurrency or if they are victims of theft from hackers.
GAIN offers
cryptocurrency trading either
as an over-the-counter (OTC) derivative or
as a future, allowing traders to speculate on price movements without owning the
underlying asset.
This company bills itself
as an operating system for
cryptocurrency assets, which exposes it to any ups and downs in the
underlying majors — BTC, ETH and LTC.
«We've come to understand that
cryptocurrencies as an
asset have exhibited clear and
underlying resiliency and have integrated themselves
as part of a diversified and balanced portfolio,» Robinhood co-founder and CEO Vlad Tenev told CoinDesk.
The AMF began an inquiry into the legal definition of a
cryptocurrency as both a derivative and an
underlying asset after several online crypto trading platforms began offering binary options, contracts for difference (CFD), and Forex contracts where
cryptocurrency was the
underlying asset.
ESMA has stated that
cryptocurrencies CFDs states that «CFDs with
cryptocurrencies as an
underlying raise separate and significant concerns
as CFDs on other
underlying»
assets.
One significant weakness that the
cryptocurrency world has is its dependence on bitcoin
as an
underlying asset.
First, being an
underlying asset for derivative financial products listed on reputable exchanges such
as the CBOE, and soon to be listed on the Chicago Mercantile Exchange (CME), will serve to legitimize Bitcoin and other
cryptocurrencies in the eyes of those market participants that remain skeptical about the market.
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as the invaluable
underlying asset, CopyCashCoin («CCC») will bring a new wave in the
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The update comes «against a background of increased enquiries to BaFin regarding the areas of securities and
asset management,» the note states, with potential ICO operators enquiring «whether the
underlying tokens, coins or
cryptocurrencies behind so - called ICOs are viewed
as financial instruments within the area of securities supervision.»