France has announced revisions to its registration requirements for cryptocurrency firms in a move to align more closely with the new regulations for the sector outlined by the European Union (EU). The French financial regulator, the AMF, revealed these changes on Thursday. With the imminent implementation of the Markets in Crypto Assets (MiCA) regulation across EU member states within the next 12 to 18 months, various countries are working to adapt their systems. The MiCA regulation seeks to regulate digital assets and the operations of companies intending to offer services within the EU’s single market.
France, which already has a comprehensive licensing structure for crypto firms in place, is making adjustments to ensure compliance with MiCA. This has prompted the nation to actively encourage crypto enterprises to register within its borders.
The updated registration requirements, set to become effective on January 1, 2024, will be obligatory for “new entrants” seeking to provide regulated services, according to the AMF. Additionally, the AMF’s modifications will enable an expedited procedure for authorization for firms that have been conducting operations within the country and have already received approval.
France revised regulations
The AMF emphasized that digital asset service providers (DASPs) that secured basic registration before January 1, 2024, will be safeguarded by a “grandfather” clause and will remain under the regulatory framework that existed prior to this date. The revised provisions within the AMF General Regulation pertain to digital asset service providers and address areas such as “security and internal control systems, systems for managing conflicts of interest, clear, accurate and non-misleading information, public pricing policies, specific custody provisions (segregation of client assets vs. own assets).” The new rules also prohibit firms from utilizing client assets without obtaining explicit prior consent from the clients.
