FameEX Hot Topics | France Adapts Crypto Regulations to Conform with EU's MiCA Law

France's financial market regulator, the Autorité des Marchés Financiers (AMF), is undergoing regulatory revisions to synchronize with Europe's newly established framework for crypto regulation. Scheduled to take effect next year, these modifications are intended to bolster registration standards for businesses in the crypto sector, particularly those offering services related to digital assets like custody and trading.

This strategic overhaul by the AMF is a response to the DDADUE law, granting the French government the authority to adopt directives from the European Union. This includes the guidelines outlined within the Markets in Crypto Assets (MiCA) legislation. Among the notable aspects of MiCA, the legislation introduces an "enhanced" registration framework, slated to become compulsory from January 1, 2024. This framework applies to entities engaged in providing specific digital asset services, encompassing custody solutions, transactions involving fiat-to-crypto and crypto-to-crypto trading.

The forthcoming amendments by the AMF are meticulously designed to incorporate these novel provisions into its General Regulation and overarching policies. Of particular emphasis are the digital asset service providers (DASPs) that fall under the purview of the "enhanced" registration framework. The overarching objective is to ensure that the prerequisites for DASPs operating in France align seamlessly with the prerequisites for obtaining European Union authorization as crypto asset service providers (CASPs) under the MiCA legislation.

Enhanced registration for DASPs mandates a series of stipulations that crypto companies must adhere to. These requirements span various dimensions, such as the establishment of robust security measures, the implementation of internal control systems, the development of strategies to manage conflicts of interest, the provision of precise and transparent information to stakeholders, and the commitment to maintaining pricing policies that are accessible to the public.

France's relatively well-defined crypto regulatory environment has garnered the attention of numerous crypto companies, including significant players like Binance. Moreover, institutional entities looking to extend digital asset services to their clients have also been drawn to the nation's regulatory clarity. AMF Secretary General Benoît de Juvigny emphasized that both French and European regulatory frameworks are open to participation from American enterprises interested in the sector. This signals a welcoming stance for those aiming to capitalize on the regulatory structures of both France and potentially the broader European context.

In summary, the AMF, as France's financial market regulator, is actively revising its regulatory framework to align with the evolving European crypto regulatory landscape. The slated changes, set to become effective in the coming year, are primarily concerned with elevating registration standards for crypto-oriented businesses, particularly those offering specific digital asset services. These modifications are in congruence with the DDADUE law and its integration of MiCA legislation, including the introduction of an "enhanced" registration framework. The intent is to synchronize French DASPs with EU standards, encompassing aspects such as security measures, conflict of interest management, accurate information dissemination, and transparent pricing policies. The transparency and regulatory clarity offered by France's crypto environment have magnetized significant industry players, and the country remains open to American participation in both its regulatory regime and potential European ventures.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.