France Revamps Crypto Firm Rules To Embrace MiCA Standards

Key Points:

• France’s AMF aligns crypto regulations with upcoming EU standards, promoting transparency.
• New players must follow stricter registration guidelines starting in January 2024, ensuring security and compliance.
• AMF’s changes led to Societe Generale’s crypto division getting the first license, indicating a proactive regulatory shift.

France’s financial regulator, the Autorité des marchés financiers (AMF), revealed its amendments to crypto firm registration guidelines on Thursday in a move to comply with the European Union’s new regulations.

These changes are in response to the upcoming implementation of the Markets in Crypto Assets (MiCA) regulation within the next 12 – 18 months, aimed at regulating digital assets and firms operating in a single market.

The AMF’s adjustments are geared toward embracing the “enhanced” registration structure introduced by the DDADUE Law. Starting from January 1, 2024, these changes will also help ease the transition towards the MiCA Regulation. The primary objectives of the modifications are twofold:

• Integration of “enhanced” registration requirements for Digital Asset Service Providers (DASPs) into the AMF General Regulation and its policies. This new regime will be obligatory for fresh entrants wanting to provide the four mandatory registration services.
• Harmonization of DASPs licensing prerequisites with those of European authorization for Crypto-Asset Service Providers (CASPs) under the MiCA Regulation. Additionally, it paves the way for a streamlined process for CASP authorization.

This move is expected to foster greater transparency, security, and compliance among crypto firms operating in France’s market.

Notably, the AMF recently granted its first crypto license to Societe Generale’s crypto division, while other prominent entities like Binance are already registered with the regulator.

The modifications also focus on aligning the provisions applicable to licensed DASPs with Title V of the MiCA Regulation, aimed at service providers for crypto-assets. The AMF anticipates that these changes will indirectly affect enhanced registered DASPs as well.

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