Marielle Cohen-Branch also cautioned that there is a gap for complaints against unregistered crypto companies.
- According to a report released Wednesday, crypto investment schemes were engaged in one-quarter of suspected frauds investigated by the French financial ombudsman last year.
- The percentage, which is up from 6% in 2020, shows that the sector is displacing more traditional foreign exchange schemes as a source of referrals to public prosecutors, according to Marielle Cohen-research. Branche’s
- Crypto investors in France have also been cautioned that they will be unable to file complaints against providers who are not registered with the AMF, France’s national financial markets body.
- The ombudsman can only intervene if the professional actively sought the investor in France, according to the report, which also noted the creation of a new type of dispute relating to crypto-assets.
- Cryptocurrency providers who want to sell in France must register with the AMF, which oversees governance and anti-money laundering compliance.
- However, the ombudsman cautioned that French clients who seek out foreign crypto providers on their own initiative may be left without recourse if a problem arises.
- In cases when no criminal behaviour is suspected, Cohen-Branche, who works independently at AMF, is in charge of mediating conflicts between citizens and financial intermediaries such as brokers or investment managers.
Source: https://www.thecoinrepublic.com/2022/04/24/according-to-the-ombudsman-cryptocurrencies-is-engaged-in-one-quarter-of-all-economic-frauds-throughout-france/