Article 722-21 into force since 30 July 2023

1. To provide advisory services to subscribers of digital assets or portfolio management of digital assets on behalf of third parties, the digital asset service provider shall obtain from its clients or potential clients the necessary information concerning their knowledge and experience of investment, including trading in digital assets, their basic understanding of the risks involved in purchasing digital assets, their financial situation, including their capacity to incur losses, and their investment objectives, including their risk tolerance, so as to be able to recommend to them services on digital assets and digital assets which are appropriate and suited to their risk tolerance and capacity to incur losses. If, based on the information provided, it considers that the digital assets services or digital assets is not appropriate for the clients, especially potential clients, it shall notify them of this. If clients, especially potential clients, do not provide the information referred to above, or if the information provided is insufficient, it shall notify them that it is not able to determine whether the service or the digital asset proposed is suitable for them, and that it is therefore not in a position to provide the service requested.

2. The digital asset service provider shall warn its customers or potential customers that:

a) Due to their nature, the value of digital assets may fluctuate;

b) Digital Assets may be subject to total or partial loss;

c) Digital assets may not be liquid;

d) Where applicable, digital assets are not covered by investor compensation schemes in accordance with Directive 97/9/CE of the European Parliament and of the Council of 3 March 1997;

e) Digital assets are not covered by deposit guarantee schemes established in accordance with Directive 2014/49/UE of the European Parliament and of the Council of 16 April 2014;

3. The digital asset service provider shall develop, maintain and implement policies and procedures to enable it to collect and review all information necessary to carry out the valuation referred to in paragraph 1 for each client. It shall take reasonable measures to ensure that the information gathered concerning its clients is reliable.