France Adapts Crypto Regulations in Alignment with EU Standards

The French financial regulatory body, the AMF, has announced substantial changes to its registration criteria for cryptocurrency businesses in an effort to align with the changing environment of cryptocurrency legislation in the European Union (EU). The modifications are intended to ensure conformity with the recently adopted Markets in Crypto Assets (MiCA) laws, which are intended to control digital assets and service providers operating within the single market. MiCA is expected to be implemented across the EU over the course of the following 12 to 18 months, leading France to proactively modernize its current licensing system in order to conform to the criteria.

France’s Approach to Crypto Compliance

France, known for its pro-active attitude to regulating the cryptocurrency industry, has been actively enticing crypto businesses to register under its jurisdiction. On January 1, 2024, the “enhanced” registration procedures are expected to take effect and become mandatory for “new players” wishing to provide regulated services. For organizations that have been operating in the nation under prior permissions, the regulatory revisions also bring a simplified authorization process.

The AMF General Regulation’s modified provisions include a number of important points that are essential to digital asset service providers (DASPs). These include enhancing security measures and internal control systems, developing effective conflict-of-interest management procedures, accurately and transparently disseminating information, making pricing policies public, and making particular custody-related requirements. Notably, the framework expressly forbids businesses from using customer assets without first getting their express agreement.

The cryptocurrency branch of Societe Generale just received the first crypto license awarded by France’s AMF as a result of this industry’s ongoing evolution. This action highlights the regulator’s dedication to establishing a regulated environment while embracing the industry’s creative potential. Further demonstrating the nation’s growing importance in the crypto regulatory space are global industry titans Binance and Hex Trust, who have already registered with the AMF.

France’s proactive conformity with EU standards shows its commitment to fostering a balanced and safe crypto environment in an ever-connected global economy. France has positioned itself at the vanguard of this continuous transition, with the dynamic interaction between legislation and innovation continuing to shape the trajectory of the bitcoin industry.