France Will Soon Align With The Crypto License Regime With MiCA 

The post France Will Soon Align With The Crypto License Regime With MiCA  appeared first on Coinpedia Fintech News

In a noteworthy step of regulating the policies, France has decided to make changes in the 

cryptocurrency regulations to match the new rules set by the European Union (EU). 

Expectedly, these adjustments will come into effect from January 1, 2024, however, the aim is to bring the bitcoin industry more in line with the EU’s broader framework. 

France Aligns With MiCA? Investors Need to Worry? 

Next year, France will implement changes to its current crypto system in order to bring it into line with the pan-European framework established by the Markets in Crypto Assets Act (MiCA). 

In this context, the French financial regulator, the Autorité des marchés Financiers (AMF), has issued a statement outlining the steps that DASPs must follow in accordance with the “enhanced” registration requirements. Notably, this new regulation is all meant to define the crypto market rules in all the European networks which are broadly meant to monitor digital assets and the activities of service providers at large. France is among the several countries constantly updating its policies in preparation for the upcoming MiCA legislation.

However, France is already having a system to register cryptocurrency businesses and for greater protection is moving forward with plans to integrate its regulations with the MiCA. The country is aggressively pushing bitcoin enterprises to comply with changing laws and regulations to do a fair business practice within its territory.

DASP Registration: What will be the Changes? 

To simplify things, with effect from January 1st, 2018, new entrants who would like to offer regulated cryptocurrency services will be expected to comply with the AMF’s amended registration criteria. In addition, the AMF has simplified the authorization process for enterprises already functioning in the nation and in possession of a valid permit.

Will it impact the existing players who were operating before the law? Well, It’s worth noting that the AMF has also emphasized the inclusion of a “grandfather” clause, which safeguards digital asset service providers (DASPs) that secured basic registration before January 1, 2024.

This allows them to operate as usual under the regulatory framework that existed before the implementation of the new rules. While the EU’s MiCA regulation was passed a year ago in April 2023, it is expected to be implemented in stages from 2024-2025. 

Overall, looking at the revised provisions within the AMF General Regulation will cover various aspects relevant to DASPs, including security measures, conflict of interest management, accurate information dissemination, pricing policies, and specific custody rules to segregate client assets from the company’s assets. Notably, the amended laws will ban firms from using customer assets without their prior consent. 

France’s new policy adoption will set an example for all the other countries that want to safeguard users from financial fraud and increase investors’ trust in digital assets.