The French National Assembly has decided to tighten registration requirements for cryptocurrency service companies in the nation. The action is intended at matching French law with planned European Union (EU) regulations. The measure was already approved by the French Senate and has now been approved by the National Assembly with 60.5% of the ballots cast in support.
Starting in October, cryptocurrency firms working in France would be required to acquire a complete license from the Autorité des Marchés Financiers (AMF), ending an amnesty period that permitted more than 60 crypto platforms to run without a full license until 2026. If passed, the new rule would force bitcoin companies to comply with new European-wide standards, allowing owners more time to adjust.
Following the failure of the FTX exchange, the action is part of a larger attempt by French legislators to safeguard the banking system. The Markets in Crypto Assets Act, or MiCA, which contains a 12-18 month transition time to plan for the new rules, could go into force in complete as early as 2024. The EU-wide regulation structure will award crypto companies working across the region passporting rights.
Some of the regulated crypto firms in France
The initial change, offered by moderate lawmaker Daniel Labaronne, compelled current crypto companies to stop activities until they acquired a complete license, even if the EU's crypto laws did not yet take effect. Members of the National Assembly, on the other hand, took a softer approach to crypto licensure in the nation, allowing companies more time to comply with the new rules.
President Emmanuel Macron has 15 days to either accept or veto the measure. The new legislation is anticipated to help the nation combat money smuggling and terrorist funding. Christine Lagarde, President of the European Central Bank, has also advocated for MiCA II to control crypto asset holding and loans, expanding on the work legislators did for the initial measure.
Overall, the action represents a rising tendency among governments to tighten regulations on the cryptocurrency industry, due to its potential to facilitate illegal activities such as money smuggling and terrorism funding. While this may present difficulties for the business in the near term, it may ultimately help to create greater credibility and openness.
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