France Amends Registration Requirements for Crypto Firms

The French financial regulator announced amendments to its registration requirements for digital asset service providers as it prepares for MiCA’s implementation. France’s Autorité des marchés financiers (AMF) announced it would introduce “enhanced” requirements for crypto firms as it prepared for the implementation of the EU’s landmark Markets in Crypto Assets (MiCA) regulatory framework. Amendments to Align with MiCA The AMF has amended its registration requirements for digital asset service providers (DASPs) to better align with the EU’s upcoming regulatory framework. The regulator said its “enhanced” requirements will take effect on January 1, 2024. In its announcement, the AMF said the changes have two objectives: “to incorporate into the General Regulation and its policy the provisions applicable to DASPs subject to “enhanced” registration. This regime will become mandatory from January 1, 2024, for new players wishing to provide the four services subject to mandatory registration;” and “align the requirements for DASPs licence with those for European authorisation for crypto-asset service providers (CASPs) under the MiCA Regulation, and allow a fast track procedure to be implemented towards CASP authorisation.” France already has a relatively comprehensive licensing regime for crypto firms and is implementing changes to its regulation to comply with MiCA which will take effect within the next 12 – 18 months. EU Signs MiCA Into Law The European Union announced in May that it formally signed MiCA into law. MiCA has been in the works for a long time and will introduce a comprehensive framework for licensing and regulating crypto businesses operating within the EU. France has been one of the most welcoming countries for regulating the crypto sector. The governor of the Bank of France called for a stricter and more comprehensive licensing regime for crypto companies after 2022’s market turmoil. Recognising the need for heightened regulatory scrutiny, the French National Assembly voted on new measures for crypto regulation, including a new set of compliance frameworks for new crypto firms seeking registration in France. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.