Regulator Considers Dangerous Buying Bitcoin In Tobacco Shops
The French financial supervision authority, Autorité des Marchés Financiers (AMF), expressed criticism of Keplerk, which is going to install bitcoin vending machines in tobacco stores. According to the regulator, the crypto company cannot provide protection for customers and operates without supervision, Finance Magnates reports.
Keplerk, which has no license from either local or international regulators, intends to provide processing services for selling bitcoin. AMF doubts that buyers will be protected adequately, taking into account the specifics of cryptocurrency. The French regulator added that bitcoin is not suitable for inexperienced private investors and that crypto trading takes place out of sight of the government.
A week before, on November 22, it became known that French tobacco shops would start selling cryptocurrency. The central bank reportedly supported this initiative to satisfy the people's interest in the digital money industry.
The French Federation of tobacco shops even obtained a license from the central bank, though it was not necessary, as the stores will only be intermediaries in the cryptocurrency sales.
Keplerk and Bimedia will be the direct dealers of digital assets. They will install machines to sell vouchers for bitcoins and ethers, equal to €50, €100 or €250. These should be then activated in the Keplerk digital wallet. The company will receive a profit of 7% from each purchase. More than 24,000 tobacco shops in France will be able to start selling crypto from January 1, 2019.
Previously, the US allowed paying taxes with cryptocurrency.