The Autorité des Marchés Financiers (AMF), France’s financial markets regulator, has unveiled changes to local crypto regulations in order to comply with the European Union’s Markets in Crypto-Assets (MiCA) regime.
AMF Tweaks Registration And Licensing Framework For DASPs
In a blog post published on Thursday, August 10, the AMF announced the introduction of an “enhanced” registration framework for digital asset service providers (DASPs) and changes to local DASP licensing requirements.
According to the AMF, digital asset service providers looking to acquire a license in France will be evaluated for a broad range of requirements, including “adequate security and internal control systems, systems for managing conflicts of interest, clear, accurate and non-misleading information, public pricing policies, specific custody provisions (segregation of client assets vs. own assets).”
These requirements would also entail a ban on using client assets without their express prior consent amongst other things.
This “enhanced” registration framework is set to take effect from January 1, 2024. And it will be compulsory for new firms seeking to offer any regulated services in France.
The French financial regulator also noted that the amendments will facilitate a “fast track procedure” to be employed toward authorization for digital asset service providers already operating in the country with approval.
The AMF stated:
As a reminder, DASPs that obtained a simple registration before Jan. 1, 2024 benefit from a “grandfather” clause and continue to be subject to the framework applicable before this date.
In July, the Autorité des Marchés Financiers granted its first crypto license to the crypto arm of the Societe Generale Bank. Meanwhile, digital asset services providers, such as Binance, Bitstamp, and Hex Trust, are only registered with the regulator.
France Continues Transition Into MiCA Regime
MiCA is a “comprehensive” set of rules for digital assets approved by the European Parliament to regulate the crypto scene within the EU bloc.
Countries under the EU, including France, are looking to implement these new regulations for digital assets and firms aiming to operate in the European market.
In its latest blog post, French regulator AMF admitted that the “enhanced” registration framework is part of its preparation for the MiCA regime.
The regulator noted in a statement:
These changes, which will apply from January 1, 2024, are also intended to anticipate the transition to the European Regulation on markets in crypto-assets (MiCA) by adjusting the provisions relating to licensed DASPs.
There have been preparations – from all sides – in anticipation of the Market in Crypto-Asset regulation, which will kick off in 2024.
The European Securities and Market Authorities also recently released the first version of its consultation package, asking for contributions from various crypto entities on the most effective way of implementing MiCA regulations.