- France amends its crypto rules to synchronize with the pan-European MiCA regulations.
- Enhanced registration protocols for crypto platforms to come into force by January 1, 2024.
Navigating the New Regulatory Landscape
As digital currencies gain traction worldwide, France has proactively updated its crypto licensing regime to stay in sync with the broader European blueprint laid out by the Markets in Crypto-Assets (MiCA). The prime financial watchdog of France, the Autorité des Marchés Financiers (AMF), shed light on these changes in a recent press release dated August 10.
This move aims to ensure that national regulations resonate with the pan-European framework. Specifically, the amendments touch upon the policies relating to digital asset service providers (DASPs), paving the way for what is termed as the “enhanced” registration.
To demystify, the “enhanced” registration is outlined in the new Article 721-1-2 of the AMF General Regulation. It delineates robust protocols for crypto platforms to maintain, such as:
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- Efficient management systems to navigate conflicts of interest.
- An uptick in disclosure obligations to ensure transparency.
- Clear demarcation between client assets and platform-held assets.
- A stringent restriction preventing the use of client assets without their explicit, prior approval.
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Timelines and Legacy Provisions
Set to become operational from January 1, 2024, these revised regulations will be crucial for future applicants seeking enhanced DASP registration. However, there’s a silver lining for existing entities. DASPs that secure their registration before the 2024 deadline will operate under a “grandfather clause”, allowing them to function under the older, less intricate regulatory framework.
Zooming out to the broader European context, MiCA, representing the first comprehensive crypto regulatory framework, received the green light from the European Parliament back in April 2023. With roll-out plans spanning 2024 and 2025, this ambitious legislation is a testament to Europe’s commitment to regulating the digital currency realm, albeit not without its challenges.
Worthy of note is one of the MiCA stipulations that has ruffled feathers in the crypto community: a ceiling of 200-million euros (approximately $219 million) on daily transactions for private stablecoins like Tether.
While any significant change naturally invites scrutiny and debate, what remains undeniable is Europe’s, and by extension France’s, intent to bring clarity and structure to the burgeoning digital asset landscape.
