Bonjour!! According to recent reports, French officials have taken pride in their crypto-ready legislation, which contrasts with the SEC’s halting enforcement campaign. In addition, French officials are interested in the next iteration of Web3 gaming regulations.
In the rapidly evolving crypto landscape, legal matters surrounding digital assets have become a pressing concern for regulatory authorities worldwide. The SEC has been at the forefront of addressing crypto-related issues. However, their approach to crypto litigation has been a subject of criticism, garnering attention not just from within the United States but also from international experts, including French legal experts.
French AMF officials take pride in their crypto regulatory approach
According to a consensus of reports, French officials have taken pride in the regulatory certainty they can provide. This occurs as U.S. law enforcement officials wage a fierce, if not wholly successful, war against crypto.
With a crypto registration regime in place for years, new EU regulations known as MiCA are scheduled to go into effect in 2024, and legislators are discussing a regime for gaming involving non-fungible tokens (NFTs). ADAN’s conference was informed that French officials are optimistic about the country’s readiness for Web3.
MiCA, which enables wallet providers and exchanges to operate across the EU with a single license, “will allow this sector to move to the next gear in terms of regulatory requirements,” said Marie-Anne Barbat-Layani. Marie-Anne added that France’s Financial Markets Authority (AMF), the regulator she chairs, is “resolutely open to innovation.”
Barbat-Layani compared the situation in France to that on the other side of the Atlantic.
Some of our peers, notably the U.S. SEC [Securities and Exchange Commission], have launched litigation strategies – strategies of which the successes aren’t totally clear – but which seek to treat crypto as a traditional financial instrument […] It’s a different choice to that made in Europe.
Marie-Anne Barbat-Layani
MiCA, which was passed into law in June and goes into full effect in December 2024, modifies the existing rules for trading in financial instruments, whereas the SEC has taken action against a number of crypto entities, including Binance and Coinbase.
The SEC claims that they should have registered as securities trading platforms under existing regulations and that certain tokens they have listed should have been registered as securities.
This U.S. strategy may have suffered a setback last week when a court ruled that Ripple’s XRP token does not inherently fall under the existing, century-old securities laws.
France takes a position as the next crypto hub
France has positioned itself as a crypto hub, and companies like Binance have registered under the AMF-administered PACTE law. On Tuesday, the AMF granted its first-ever crypto license to Forge, the financial-technology arm of Societe Generale, a still more rigorous procedure that brings Forge in line with MiCA in a significant way.
Being regulated has its advantages and disadvantages, as Binance recently discovered when it was seized by the Paris public prosecutor for “aggravated money laundering.” Binance has stated that it is cooperating with investigators, and the incident does not appear to have dampened the company’s enthusiasm for the French nation.
There is “no reason” for leaving France due to this investigation, Binance Stéphanie Cabossioras, France’s Executive Director for Legal Affairs, stated. She added that recent events were merely a part of adjusting to life as a traditionally regulated financial institution. “There are little surprises… but it will become day-to-day life.”
While entrepreneurs in France may complain about high taxation, employment restrictions, and an absence of venture capital investment opportunities, the French country offers benefits beyond regulatory certainty.
What is the future of crypto traders in France?
Now, France intends to capitalize on its regulatory success by enacting a new regime for Web3-style games involving monetizable digital objects – tradable items that bestow privileges within the game and whose value can be increased by playing more – known by its French acronym JONUM.
Isabelle Falque Pierrotin, chair of France’s National Gambling Authority (ANJ), stated that if lawmakers agree on a framework in the autumn, there could be a “text by the end of the year” – adding that she preferred legislation that merely set high-level objectives, such as protecting children, allowing her to negotiate details with the industry.
In May, French Web3 company Sorare, under regulatory duress, announced changes to its NFT football game for the domestic market, although the ANJ only intended these as a short-term solution pending legislative changes.
Some believe that if these new gaming regulations were enacted, they would have a significant impact.
