Marielle Cohen-Branche, the French financial ombudsman, revealed that around 25% of all suspected monetary frauds committed in France last year were linked to cryptocurrency investment schemes. This is an increase of 6% from 2020, when they were at 6%.
Crypto Scams are on the Rise in France
Due to the increasing popularity of digital assets, fraudsters are likely to be employed. Marielle Cohen-Branche, the French ombudsman, revealed that these schemes accounted for 25% of all monetary frauds in France between 2021 and 2022.
The Autorite des Marches Financiers is required to register digital asset service providers in France. This agency is responsible to safeguard investments and ensure compliance with anti-money laundering regulations.
Cohen-Branche advised clients that it is best to choose a local company with a license from AMF to trade cryptocurrencies. She warned that foreign exchange traders might not be compensated if something goes wrong.
“The ombudsman can only act if the professional actively solicited the French investor.”
Marielle Cohen-Branche, Source: SMCP
Notably, cryptocurrencies accounted only for 6% of all monetary frauds in France in 2020. Cohen-Branche says that the sharp rise in cryptocurrencies indicates that the financial picture in Europe is not good.
Banque de France Urges for Quick Regulations
Francois Villeroy De Galhau, Head of France’s Central Bank, stated last summer that the European Union and its fiat currency, the euro could be facing tough times if the urgent rules for the cryptocurrency sector are not followed.
“Whether it’s digital currencies or payments, Europe must be prepared to act quickly if necessary. Otherwise, we run the risk of losing our monetary sovereignty.”
Robert Ophele, chairman of AMF, had previously called for the establishment of a regulatory framework surrounding digital assets. He stated that the move could help to boost innovation and growth.
Ophele, on the other hand, does not want too many restrictions placed on the industry. Ophele argued that this initiative could push crypto-based businesses outside of the European Union.
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