Crypto firms in France would have to obtain mandatory licence in order to operate their business. As per a tweet by the nation’s financial markets authority [AMF],
“The AMF, like the parliament, calls for an accelerated move to a regime of obligatory licensing for non-registered providers” of crypto services, its chair Barbat-Layani said at an event as stated in the post.
Barbat-Layani looked to be in favour of a measure put out by the French Senate last year that would require cryptocurrency enterprises to apply for regulatory recognition before the European Union’s new Markets in Crypto Assets [MiCA] law takes effect on October 1, 2023.
This comes after the head of the France’s central bank recently proposed to adopting a licensing regime for crypto service providers.
The “disorder” that has existed in the business over the past year has led to tighter regulatory scrutiny, according to the top boss.
Banque de France Governor Francois Villeroy de Galhau has further urged making it bound by law for crypto businesses to conform with strict regulatory requirements.
In reaction to the recent instability in the sector, licencing must be implemented in place of the current registration, he insisted.
According to Bloomberg, De Galhau believed that Paris should move forward without delay in order to comply with impending EU legislation that will require Digital Asset Service Providers [DASPs] to receive licences from the French government.
France’s Agency Obtain Registrations Application From 60 Crypto Platforms
The Autorité des Marchés Financiers or AMF has received registrations from some 60 cryptocurrency-related platforms, including major international firms like Binance, the biggest cryptocurrency exchange.
Licenses are still an option and there are no licensees yet among the digital asset service providers registered in France.
Finance Minister of France Bruno Le Maire announced to local media last year that France will evaluate its cryptocurrency tax regulations in 2023 as it strives to become the world’s top blockchain hub and won’t simply seek to copy existing standards for stocks.
“We want to make the European Union the world’s leading economic zone for structuring and organizing the crypto market,” said Le Maire. “We want France to be the European hub of the crypto asset ecosystem.”
The groundbreaking Markets in Crypto Assets law [MiCA], which allows cryptocurrency businesses to operate throughout the bloc providing they adhere to stability and investor protection standards, has just been approved by the EU.