- France has taken a step in preparation for MiCA.
- The country’s top financial agency outlines six areas where registration guidelines will be adjusted.
- The new guidelines will take effect in 2024.
With less than 12 months left for parts of the bill to become applicable, regulators and crypto businesses alike are racing to meet the requirements of the new rules. Amid this race, France appears to be taking the first step.
France Announces “Enhanced” Crypto Licensing Regime
In a press release on Thursday, August 10, France’s primary financial regulatory agency, the Autorité des Marchés Financiers (AMF), disclosed that it was rolling out an “enhanced” licensing process for crypto firms termed Digital Asset Service Providers (DASPs) as part of preparations for MiCA.
The new licensing regime, which the agency asserts will take effect from January 1, 2024, outlines six key areas where it would be making modifications. The outlined areas include:
- Security and internal control systems.
- Managing conflicts of interest.
- Corporate communications to the public.
- Public pricing policies.
- Segregation of customer deposits.
- Restrictions against using customer funds without consent.
France’s enhanced licensing regime represents the first major move by a European regulator in preparation for MiCA. It is worth noting that the improved licensing regime will only apply to firms seeking registration after the 2024 implementation date. Firms registered before 2024 will be under a “grandfather clause,” allowing them to continue operations by adhering to previous guidelines.
France’s push for constructive crypto regulations is paying off, as leading crypto exchanges like OKX and Crypto.com have staked their European ambitions in the country.
On the Flipside
- The AMF is yet to give details on the standards for the new guidelines.
- The exemption of already registered firms raises questions about the effectiveness of the new regime.
Why This Matters
France is one of Europe’s leading economies. The country’s swift move to modify registration guidelines to align with MiCA suggests it intends to position itself as a top choice for crypto businesses looking to gain MiCA licenses.
Learn about OKX’s Paris ambitions:
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