French Regulator Warns in opposition to FX Buying and selling Robots

AMF Issues a Warning Regarding Unauthorised FX Robots
The Autorité des marchés financiers (AMF), the French financial market authority, has warned enterprises using unapproved automatic foreign exchange trading robots that frequently entice people with attractive offers. Unregulated firms target French overseas departments and territories, offering astronomical profits of up to 400% annually or 5 to 15% monthly. These companies usually market subscriptions of licences to their robotic purchasing and selling that can reach several hundred or thousand euros.
“Traders who would like to establish an account with a special companion dealer are welcome to do so. It is not appropriate to authorise the dealer to provide this kind of service to the French public. Only crypto-assets are used for deposits and withdrawals,” the regulatory alert stated.
Platforms Utilise MLM and Social Media
The AMF issued the warning after receiving several reports from overseas traders and institutions in recent months about the fraudulent purchase and sale of robotic software that purports to offer funding options in the foreign exchange market. These platforms frequently host live online promotional events and operate social media and messaging teams advertising campaigns.
In addition, these schemes levy high fees for early withdrawals, which deters inventors from leaving the fraudulent schemes. Furthermore, they offer rewards for recommendations. Rather than taking their possible profits too soon, which could result in fees, retail traders are motivated to make affiliate profits by bringing in new members. They are offered commissions or bonuses at various levels, similar to multi-level marketing and advertising (MLM) buildings, whose pushy tactics in the purchase and sale of coaching packs were exposed by the AMF in June 2020,” the alert continued. “Each schemes use the identical key phrases, reminiscent of ‘monetary freedom’ and ‘passive earnings’.”
Authorities Exercise Caution
It is not the place of the French authority to issue warnings against these kinds of automated buying and selling schemes. The Monetary Companies and Markets Authority (FSMA) of Belgium red-flagged several dishonest funding companies in 2021, including one that offered Knowledgeable Advisors. The Belgian supervisor also cautioned retail merchants against purchasing and selling software as a whole. The retail provision of counterparty funding instruments is prohibited in Belgium.
Prior to this, the French authorities disclosed that in 2022, there were over 1.5 million active traders in the country’s stock exchanges. With over 1.6 million active traders, the figure was 5.5% lower than the previous year; nonetheless, it was higher than 1.3 million active traders in 2020.
Number of Sites Removed from the Blacklist
Recently, 15 illicit Forex platforms were discovered by French regulators to be active in the nation. This year, there were 49 platforms on the blacklist of unauthorised Forex websites, down from 61 platforms the previous year, a 30% decrease.