France Adapts Crypto Firm Registration Requirements in Line with EU’s MiCA Regulation

France Adapts Crypto Firm Registration Requirements in Line with EU’s MiCA Regulation

The nation’s financial regulator, AMF, has introduced enhanced registration prerequisites for digital asset service providers. These requirements are slated to become effective on January 1, 2024.

France has revised its registration criteria for cryptocurrency firms to harmonize with the fresh regulations introduced by the European Union for this sector. The French financial regulator, AMF, disclosed this development on Thursday.

Across the European Union, preparations are underway to enforce the recently finalized Markets in Crypto Assets (MiCA) regulations, which pertain to digital assets and companies aiming to cater to the unified market. These regulations are expected to take effect within the next 12 to 18 months. France, having already established a comprehensive licensing framework for cryptocurrency companies, is now making certain adjustments to align with MiCA. In line with this, the country has been actively encouraging businesses to complete their registration within its borders.

Commencing from January 1, 2024, the enhanced registration prerequisites will be obligatory for new entrants seeking to offer regulated services, as highlighted by the AMF. These modifications will also facilitate an expedited authorization process for firms that have been operating in the country under approval.

The AMF emphasized that cryptocurrency service providers that secure a basic registration before January 1, 2024, will enjoy the benefits of a “grandfather” clause. This ensures their continued adherence to the regulatory framework in place prior to this date.

The revised stipulations within the AMF General Regulation for digital asset service providers encompass a spectrum of facets, including security and internal control mechanisms, strategies for managing conflicts of interest, transparent and accurate information dissemination, public pricing policies, specific guidelines for asset custody (demarcation between client and company assets), and a prohibition on utilizing client assets without explicit prior consent.

Notably, the AMF recently granted its inaugural cryptocurrency license to Societe Generale’s cryptocurrency division. Notable entities like Binance and Hex Trust have also secured registration under the oversight of this regulatory body.