France’s financial regulatory authority, the AMF, has unveiled revised registration prerequisites for digital asset service providers, slated to become effective on January 1, 2024. This adjustment aligns France’s registration criteria for cryptocurrency enterprises with the fresh regulatory framework established by the European Union. The announcement was made by the AMF on Thursday, media reports said.
Notably, the AMF recently granted its inaugural cryptocurrency license to Societe Generale’s cryptocurrency division. Additionally, regulatory-compliant entities like Binance and Hex Trust are among those already registered with the AMF.
Within the European Union, member states are gearing up to adopt the finalized Markets in Crypto Assets (MiCA) regulation aimed at governing digital assets and businesses operating within the single market. The enforcement of MiCA is anticipated to unfold over the next 12 to 18 months.
France, having already established a comprehensive licensing system for crypto entities, is making refinements to ensure compatibility with MiCA. In this endeavor, the country has actively encouraged crypto companies to formalize their presence through registration.
The impending “enhanced” registration prerequisites are scheduled to come into effect on January 1, 2024. These mandates will be obligatory for fresh entrants seeking to offer regulated services, as indicated by the AMF. Moreover, these modifications will facilitate an expedited authorization process for entities that have been conducting operations within the country under existing approval.
The AMF clarified that digital asset service providers (DASPs) that secure a basic registration prior to January 1, 2024, will enjoy the benefits of a “grandfather” clause. This safeguard allows them to continue adhering to the regulatory framework that was applicable prior to this pivotal date.
Key aspects of the updated provisions within the AMF General Regulation pertain to digital asset service providers and cover various facets. These encompass fortifying security and internal control systems, devising mechanisms for conflict of interest management, ensuring transparent and accurate information dissemination, establishing public pricing policies, implementing specific custody protocols that delineate client assets from proprietary assets, and imposing strictures against the utilization of client assets without their explicit and prior consent.
