France is preparing to align its crypto regulations with the new European framework under MiCA, the Crypto Asset Markets regulation that will apply to all digital asset service providers (DASPs) operating in the EU.
France Prepares to Implement MiCA for Crypto Firms
The country's financial regulator, AMF, announced that it is “improving” registration requirements for crypto firms, which will come into effect from January 1, 2024.
According to the AMF, the new requirements will be mandatory for “new players” who wish to provide any regulated services such as custody, clearing, brokerage or advisory services.
The changes will also “allow a rapid authorization procedure” for firms already operating in the country as approved.
AMF said the “enhanced” record would include a more detailed review of the firm's governance, risk management, compliance and security policies and procedures.
The regulator will also verify the firm's compliance with anti-money laundering and counter-terrorism financing rules, as well as consumer protection and market integrity standards.
France was one of the first countries in Europe to introduce a comprehensive licensing regime for crypto firms, established by the PACTE law in 2019.
AMF has recently awarded its first crypto license to Societe Generale's crypto division, Forge. Other firms such as Binance and Hex Trust are also registered with the regulator.
*Not investment advice.