French authorities have decided to wait for MiCA’s legalization before introducing stricter crypto regulations.
Members of the French National Assembly, the lower house of the bicameral French Parliament under the Fifth Republic, have passed a new crypto-related amendment suggested by politician Daniel Labaronne.
According to the amendment passed on January 24th, existing crypto firms will be able to operate in the country without full authorization until the European Union legalizes its Markets in Crypto-Assets (MiCA) regulation.
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In France, crypto-related companies must receive crypto asset service provider (CASP) registration and a full license to be authorized in the country. Despite that, French regulators currently allow and will continue to allow crypto firms to operate in the country after the latter receives only the crypto asset service provider status.
To this day, from around 60 licensed crypto service providers, none of them have opted to complete a full registration.
On the other hand, in December, Senate member Hervé Maurey proposed an amendment requiring all registered CASPs to gain full authorization by the end of 2023. It was assumed that this amendment would have allowed French authorities to speed up the adoption of higher standards for crypto-related firms. However, French lawmakers rejected this proposal.
Based on the now-approved amendment, only new crypto firms launched in 2024 or later will have to complete full authorization before receiving a green light to operate in France.
When commenting on the newly passed amendment, French crypto industry association President and CEO Faustine Fleuret stated:
This is a pragmatic decision aimed at striking the right balance between the flourishing of innovation in France and the safe environment for users in which it must necessarily take place. It is also a message to the sector about the exemplary nature and professionalism expected of the players on this path towards harmonization of European regulations.
It seems that the French authorities will have to wait a little longer until the European Union legalizes MiCA. Just recently, the news broke that the European Parliament has delayed the final vote on the legalization of MiCA to April.