France’s financial regulator, the Autorité des Marchés Financiers, has updated its policy on complex financial products to reflect the rise of crypto-assets and the implementation of the European Markets in Crypto-Assets regulation. The regulator is now clarifying these rules to accommodate crypto-asset-linked exchange traded notes under certain conditions.

In a related move, the AMF approved rules for LISE, the country’s first blockchain-based stock exchange. The platform allows direct retail trading of tokenized shares for small and mid-sized companies under the EU Pilot Regime.

Investors can trade without brokers using digital wallets, and access requires a knowledge test. LISE targets companies with a market capitalisation under €500 million and a total market cap limit of €6 billion, providing an alternative to traditional exchanges such as Euronext.

MiCA Provides Regulatory Framework

MiCA provides a coordinated framework for crypto-asset service providers and imposes transparency obligations on issuers.

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The AMF said it adapted its policy to address structured products linked to crypto-assets, noting that certain crypto-assets, if they meet predefined conditions, “are no longer unusual for retail clients.”

The regulator said the changes aim to reflect new market practices while continuing to protect retail investors.

AMF Seeks Investor Protection

The AMF’s policy on complex products is designed to reduce information asymmetry between retail investors and product issuers. Previously, the regulator set out criteria to assess whether financial instruments carry risks that retail clients may not understand.

Products failing these criteria were required to carry a warning stating: “the AMF considers that this product is too complex to be marketed to retail investors and has therefore not reviewed its marketing materials.”

Four Conditions Apply to Crypto-ETNs

The regulator requires four cumulative conditions for crypto-ETNs. The underlying crypto-assets must have a market capitalisation of at least €10 billion, a 30-day average daily trading volume of at least €50 million, and be tradable on a MiCA-authorised platform.

Products must have no leverage or discretionary component. Exposure must be through direct holding, regulated securities, or regulated instruments, and custody must be with a MiCA-authorised service provider.

Policy Review Scheduled for 2027

The AMF emphasised that crypto-asset-linked debt securities remain complex financial instruments and fall under the Markets in Financial Instruments Regulation.

Providers must ensure suitability for retail clients and define a target market. Prospectus approval may be required above certain thresholds. The regulator also warned that “crypto-assets can be subject to sharp price fluctuations” and said it plans to review the policy adaptation in the first half of 2027.