France amends crypto regulations ahead of 2024 MiCA implementation
The EU Council unanimously passed the MiCA regulation in May.
France already has a comprehensive crypto licensing regime but is updating them to make them MiCA-ready.
Autorité des Marchés Financiers (AMF), France’s financial regulator, announced on 10 August that it has amended its registration requirements for crypto platforms. It said it had taken the decision ahead of the implementation of European Union’s (EU) Markets in Crypto Assets (MiCA) regulation in the country.
MiCA will come into force across Europe on 1 January 2024.
The regulator has created a new Article 721-1-2 of the AMF General Regulation to “enhance” its crypto registration process. It restricts crypto firms from using client assets without the express prior approval of the client.
The EU Council unanimously passed the Markets in Crypto Assets (MiCA) regulation in May.
Two months later, European and Securities Markets Authority (ESMA) chair Verena Ross warned customers in the EU that,
“There will be no such thing as a safe crypto-asset.”
Ross cautioned consumers that cryptocurrencies are still risky. ESMA is the financial regulator of the EU.
How crypto has been navigating France so far
France already has a comprehensive licensing regime for crypto firms.
In February, the French National Assembly voted in favor to enact stricter licensing rules for new crypto exchanges. The law would require France-based exchanges to comply with stricter anti-money laundering (AML) rules.
The exchanges would be required to adhere to new guidelines on reporting to regulators. They would also have to provide more detailed risk and conflict of interest disclosures as a means to strengthen consumer protection.
In June, the AMF granted crypto custody registration to CACEIS. The asset servicing division is owned by French banking giant Credit Agricole and Santander.
France was the first prominent European nation to register Binance [BNB], the world’s leading crypto exchange, in 2022. French authorities are, however, now investigating the crypto firm for allegedly offering its services illegally prior to receiving the approval.
President Emmanuel Macron is famous for its vocal support of the virtual assets industry.
Before the second round of the presidential election in April 2022, Macron had expressed his faith in a number of industrial steps. These include raising the number of tech unicorns in the country, developing an NFT policy, and the European metaverse.
However, he also shared his skepticism toward the self-regulated financial sector.
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