France Updates Cryptocurrency Laws to Reflect MiCA Licensing Requirements

France Updates Cryptocurrency Laws to Reflect MiCA Licensing Requirements 

Contents

  • Updated DASPs Legislation: Changes for New Registrants
  • It's go time for MiCA!
  • MiCA Regulation: A Model for Global Digital Asset Frameworks
  • EU Prepares for MiCA's Impact: Crypto Businesses Strive for Compliance

In response to the Market in Crypto Asset (MiCA) rule, the French financial regulator Autorité des Marchés Financiers (AMF) has announced significant changes to its digital asset regulatory system.

The latest changes to its General Regulation and a new registration procedure for Digital Asset Service Providers (DASPs) will go into effect on January 1, 2024.

According to the press release issued on August 10th, the revised Article 721-1-2 of the AMF General Regulation provides improved registration procedures for digital asset firms.

In light of the high-profile collapse of FTX and the ongoing case against its former CEO Sam Bankman-Fried and sister company Alameda Research, the agreement contains important provisions on timely disclosures of new developments to the financial regulator and strict rules against commingling of user assets.

Further, the rule forbids platforms from using customers' assets without their knowledge or permission.

The strategy contains a framework for the handling of rising conflict of interest concerns between corporations and consumers, all while being harsh on companies to encourage investors.

Updated DASPs Legislation: Changes for New Registrants

A slightly modified version of the legislation will apply to DASPs who have already registered and earned a license, but the new regime will apply to new registrants in the nation as of the new year.

    "As a friendly reminder, DASPs that obtained a simple registration prior to January 1, 2024 will be grandfathered in and will continue to be subject to the framework applicable prior to this date."

It's go time for MiCA!

The Multilateral Investment Guarantee Agency (MiCA) has been heralded as a milestone law by many in the web3 industry for its focus on stablecoins, crypto assets, trading, exchanges, etc.

MiCA Regulation: A Model for Global Digital Asset Frameworks

With the worldwide reach of digital assets, the European Parliament has passed MiCA, which would be implemented in stages between 2024 and 2025. Questions have been raised about the need for a comparable framework in other countries.

As it creates a uniform, logical taxonomy for virtual assets, MiCA has been called a "comprehensive piece of regulation" by Financial Services and Capital Markets Union policy officer Ivan Keller.

EU Prepares for MiCA's Impact: Crypto Businesses Strive for Compliance

The EU is seeing a proliferation of new local laws in anticipation of MiCA's success, and crypto-based businesses are working to ensure complete compliance with the framework before it goes into effect.

Industry leaders and opponents in countries like the United States have considered the lack of regulatory certainty in the nation, urging policymakers to follow the European Union's lead.

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