France is on the brink of introducing strict licensing laws for new cryptocurrency firms as it seeks to align with European Union (EU) standards. The French National Assembly voted in support of the new laws, which will now require the approval of President Emmanuel Macron to come into effect. The bill, which already passed the French Senate, will compel French-based cryptocurrency service providers to comply with stricter anti-money laundering rules, show segregated customer funds, and provide more detailed risk and conflict of interest disclosures, among other provisions. The legislation will strengthen consumer protection while harmonizing local laws with EU proposals.
The legislation will not apply to the 60 crypto firms already registered with the Financial Markets Authority (AMF), France’s financial regulator, but only to firms that register from July 2021 onwards. Binance is among the 60 firms already registered with AMF. Due to recent turmoil, this move to tighten cryptocurrency regulations in France is part of the global push to regulate the cryptocurrency market.
Hervé Maurey, a primary member of the French Senate’s finance panel, proposed removing the clause allowing crypto companies to operate without a complete license until 2026. The Bank of France Governor, Francois Villeroy de Galhau, also pushed for the bill’s agenda, citing the importance of responding to the ongoing upheaval in the cryptocurrency market The French lawmakers aim to implement the licensing regime for digital asset service providers as soon as possible, as waiting for the EU’s more comprehensive laws would cause unnecessary delays.
After two postponements, the EU can vote on the Markets in Crypto-Assets (MiCA) regulation in April. If the outcome is successful, the highly anticipated crypto laws will come into force sometime in 2024. In the meantime, France is taking proactive steps to ensure its cryptocurrency market is well-regulated and aligned with EU standards.
