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AMF Cautions French Investors on Unregulated Trading Platform BITGET

source-logo  financemagnates.com 02 April 2024 19:58, UTC

The Financial Markets Authority (AMF) has issued a warning to savers in France regarding investment proposals by the digital asset trading platform BITGET. The AMF emphasized the need for utmost vigilance, highlighting that BITGET is not authorized to provide its services on digital assets within France. As a consequence, the AMF is prepared to take legal action to block the platform's site.

AMF Targets Unregistered Digital Asset Platforms

Under the monetary and financial code, certain activities related to digital assets, including custody services, purchase or sale of digital assets, and operation of digital asset trading platforms, necessitate mandatory registration as a digital asset service provider (PSAN). This registration ensures compliance with regulations aimed at combating money laundering and terrorism financing, as well as verifying the integrity and competency of management and shareholders, thereby safeguarding the interests of investors.

BITGET, however, has not obtained the required registration as a PSAN and has been providing digital asset services in France without authorization. Consequently, the platform has been on the AMF blacklist since November 7, 2023, due to non-compliance with French regulations. The AMF, empowered by the monetary and financial code, reserves the right to pursue legal action to block the site of BITGET and other similar platforms operating illegally in France.

In light of these developments, the AMF advises French savers who have invested through BITGET to take necessary precautions to mitigate risks associated with a potential disruption in service provision. Savers are urged to organize their affairs to prevent any potential loss of access to their assets, be they digital assets or derivatives thereof.