From the beginning of 2024, new DASPs filing for French crypto license will have to comply with new regulations.
France is on the path to updating its existing regulatory structure regarding cryptocurrencies. The changes, set to take effect next year, aim to synchronize the national legal framework with the EU regulations known as the Markets in Crypto-Assets (MiCA).
As part of the move towards “enhanced” registration, the key financial regulator in France, the Autorité des Marchés Financiers (AMF), revealed policies for digital asset service providers (DASPs) and the provisions of its General Regulation.
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A press release published on August 10th detailed the modifications, including new measures, such as management systems for handling conflicts of interest, additional disclosure requirements, segregation between client and platform assets, and a prohibition on using client assets without prior consent.
These amendments, encapsulated in Article 721-1-2 of the AMF General Regulation, will come into force on January 1st, 2024. All new applicants for enhanced DASP registration must take these amendments into account.
Notably, DASPs who secure registration before the January 1st, 2024, deadline will benefit from a “grandfather clause,” and they will continue to be governed by the previous, less stringent regulatory framework.
The MiCA, approved by the European Parliament in April, is the first comprehensive crypto framework across the European Union. It is scheduled to be implemented in three stages between 2024 and 2025.
It is worth noting that after the EU passed MiCA, France considered “fast track” options for crypto firms to comply with MiCA.
The impending changes to France’s crypto regulations signal the nation’s efforts to align with broader European standards set by MiCA. The move not only strengthens the legal framework around cryptocurrencies within France but also contributes to a unified approach across the continent. Despite potential challenges and concerns within the crypto community, the updated licensing regime sets a clear direction for digital asset service providers and enhances customer transparency and protection.