France Aligns Crypto Licensing Regulations with MiCA Framework Through Latest Update

France is gearing up for significant amendments to its cryptocurrency regulatory landscape, aiming to synchronize its existing regime with the pan-European framework established by the Markets in Crypto Assets (MiCA) act. These changes are slated to take effect next year, signifying a strategic move to align the nation’s regulations with broader European standards.

The Autorité des marchés financiers (AMF), France’s prominent financial regulatory body, has unveiled its plans for this regulatory overhaul. In an official press release on August 10th, the AMF detailed the provisions of its General Regulation and the strategic approach it will adopt regarding Digital Asset Service Providers (DASPs).

The pivotal aspect of these amendments revolves around “enhanced” registration requirements for crypto platforms, as outlined in the newly introduced Article 721-1-2 of the AMF General Regulation. These requirements encompass an array of measures designed to bolster accountability and transparency within the crypto industry. Key provisions include protocols for managing conflicts of interest, augmented disclosure obligations, the segregation of client assets and platform assets, and the imposition of prohibitions against utilizing client assets without their explicit prior consent.

The set timeline for the implementation of these amendments is January 1, 2024, obligating all relevant entities to comply. Those entities applying for enhanced DASP registration will be mandated to integrate these regulatory enhancements into their operational practices. However, a “grandfather clause” extends its protective umbrella to DASPs that secure registration prior to January 1, 2024, thereby subjecting them to the previous, less intricate framework.

The overarching regulatory framework, MiCA, emerged as the European Parliament’s first comprehensive crypto legislation, garnering approval in April 2023. Its gradual enforcement will be orchestrated across three phases spanning 2024 and 2025. While MiCA is poised to set a precedent for crypto regulation, it has also sparked certain concerns within the crypto community. A significant contention centers around the imposed 200 million euro ($219 million) cap on daily transactions for private stablecoins such as Tether.

As France takes steps to align its crypto regulatory landscape with the MiCA framework, this move reflects broader efforts within the European Union to create a harmonized approach to crypto regulation. The upcoming changes carry implications not only for France but also for the overall trajectory of cryptocurrency regulations across the continent.

For more news, find me on Twitter or subscribe to my YouTube channel.

What is your opinion on this issue? Leave me your comment below! I’m always interested in your opinion!

Leave a Reply

Your email address will not be published. Required fields are marked *

Recommended for you