4. März 2024

France to Fast-Track Crypto Firms to New EU Rules

Summary

  • France’s financial regulator is considering a “fast track” option for registered firms so that they can comply with MiCA rules as soon as possible.
  • The European Parliament voted in favor of passing the Markets in Crypto-Assets (MiCA) regulatory package on April 20, 2021.
  • MiCA is expected to come into effect from the start of 2025 and aims to establish a clear and consistent regulatory framework for crypto assets among EU member states.

France Mulls Fast-Tracking Registered Crypto Firms

France’s financial regulator is weighing up “fast track” options for registered firms so they can be compliant with Markets in Crypto-Assets (MiCA) rules as soon as possible. In a statement published on April 21, the French Financial Markets Authority (AMF) welcomed the approval of MiCA and outlined how French regulation will proceed during the transitory period over the next 18 months. The AMF will guide the switch over to MiCA regulation for French providers of digital asset services (PSANs). The AMF stated that it is currently weighing up “fast track” options for these firms so that they can be compliant with MiCA regulations as soon as possible.

European Parliament Votes In Favor Of Passing MiCA Regulatory Package

The European Parliament voted in favor of passing the MiCA regulatory package on April 20. Moving forward, MiCA now needs approval from the European Council in July to be officially adopted as regulation. The regulation is tentatively slated to come into effect from the start of 2025 and aims to establish a clear and consistent regulatory framework for crypto assets among EU member states.

Licensing Options For Crypto Firms In France

In France, crypto firms have two licensing options; a “simple” option offering relaxed requirements, and a more stringent “enhanced” option which is favored by the government and is reported to be closely aligned with MiCA regulations already. The stricter option has greater controls surrounding anti-money laundering rules, customer asset custody, reporting to regulators and providing detailed risk and conflict of interest disclosures to strengthen consumer protection.

MiCA Regulations To Strengthen Consumer Protection

The new regulations provided under MICA are meant to strengthen consumer protection by increasing transparency between consumers and businesses who offer digital asset services such as trading platforms or custodial wallets. This includes measures such as fund provision regulations, conflict of interest policies, alignment of requested documents required under AMF and MICA regulations, among many others.

Conclusion

The upcoming Markets in Crypto Assets (MICA) laws provide an important step towards establishing clear guidelines regarding cryptocurrency regulation within Europe. Not only does this create an environment conducive for business growth but also provides consumers with more clarity when conducting transactions involving digital assets such as cryptocurrencies.