France is set to tighten regulations on crypto firms starting January 2024, in preparation for the European Union’s Markets in Crypto Assets law, MiCA. The Financial Markets Authority (AMF) also announced on Friday that it plans to consider a possible fast-track modular licensing between France’s existing regime and MiCA. This move will help existing crypto companies in France to comply with the new regulations without facing any significant difficulties.
As reported earlier by Todayq News, the French National Assembly recently voted in favour for a law that aims to introduce additional requirements on internal controls, cybersecurity, and conflicts of interest. The strengthening of France’s regulatory regime was proposed following the collapse of the FTX crypto exchange and the need to avoid loopholes before the EU’s MiCA takes effect.
Under the new regulations, companies will have to comply with financial norms and undergo mandatory checks on governance and money laundering. The legislation is expected to create a more level playing field for crypto businesses across the EU, boosting investor confidence and attracting more capital into the sector. However, no firm has yet obtained a license, which is a more burdensome process than registration, due to the additional regulatory requirements it entails.
The AMF has stated that existing crypto companies registered in France will get an extra 18 months to comply with the higher European norms under MiCA.
While the executives in the crypto industry have largely supported the MiCa legislation, some have expressed their counter-opinion, suggesting additions or highlighting its inadequacy. Christine Lagarde, President of the European Central Bank (ECB), has called for the “MiCA II” bill, which would control the activities of crypto-asset staking and lending, which are undoubtedly rising.
France has been working to position itself as a crypto-hub, and this strengthening of regulations is expected to bring more clarity and transparency in the crypto sector. The move will help to prevent incidents like the collapse of FTX and will ensure a stable and secure environment for investors.
The implementation of MiCA and the new French regulations will create a new era for the crypto industry in Europe. The new rules will help to create a more standardized regulatory framework, which will ensure the safety and security of investors. It will also help to bring more transparency and clarity to the crypto sector, making it more attractive for investors. With these new regulations, Europe is set to become a global leader in the crypto industry.