The country’s financial regulator has explored a “fast track” option for French-licensed crypto companies to be regulated under the forthcoming Markets in Crypto Assets (MiCA) laws..
In a statement published on April 21, the French Authority for Financial Markets (AMF) welcomed the approval of MiCA and outlined how French regulation will proceed during the transitional period of the next 18 months.
A key aspect for the AMF will be guiding the change to MiCA regulation for French digital asset service providers (PSANs)..
The AMF stated that it is currently considering “fast track” options for these companies to be able to comply with MiCA regulations as soon as possible..
In terms of MiCA compliance, the AMF is trying to fill the gap regarding issues such as crypto company funding regulations, conflict of interest policies, and the alignment of requested documents required under the AMF and MiCA regulation..
To the general satisfaction of the cryptocurrency industry, the European Parliament voted in favor of the approval of the MICA regulatory package on April 20.
To advance, MiCA now needs the approval of the European Council in July to be officially adopted as a regulation..
In principle, the regulation will enter into force at the beginning of 2025 and its objective is to establish a clear and coherent regulatory framework for crypto-assets among the member states of the European Union (EU).
In France, cryptocurrency companies have two licensing options– a “simple” option that offers relaxed requirements, and a more stringent “enhanced” option, favored by the government and reportedly already closely aligned with MiCA regulations.
The stricter option has greater controls around anti-money laundering regulations, custody of client assets, reporting to regulators, and detailed disclosure of risks and conflicts of interest. as a means of strengthening consumer protection.
The 60 cryptocurrency companies registered with the AMF in France are regulated under the relaxed option and will remain so until they move to MiCA regulation..
The AMF previously stated that any crypto company that registers after January 2024 will have to do so under the stricter option..
In particular, the AMF also pointed out that any company regulated under either of the two categories will only be able to offer their services in France until they are transferred to MiCA.
“These actors will be able, during this period, to continue offering their services only to the French public,” the statement reads, adding that “service providers that are approved under the MiCA regulations will be able to benefit from the European passport and provide their services in all EU countries”.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.