France cancels grace period for crypto firm
Cryptocurrency firms will be obliged to obtain a full license to operate in France from January 2024 even before the upcoming EU regulations come into force.
A committee of lawmakers from both houses of parliament agreed on the draft registration rules, but the country’s upper house must approve the text later this week. The French National Assembly should then give its final approval to the legislation on 28 February.
The central bank governor also supports the proposal by some lawmakers to abolish a deadline that the country offers to crypto platforms.
The head of the Bank of France has urged lawmakers to start working on new crypto regulations to protect the financial system following the collapse of the FTX exchange.
Currently, more than 60 crypto platforms are allowed to operate in the country without a full license until 2026, meaning they can offer their services with minimal controls. The new law will require firms to obtain a full license from the Autorité des Marchés Financiers (AMF), starting in October.
The governor of France’s central bank says the country needs to bring these tougher rules up to speed with Markets in Crypto Assets (MiCA), which the European Parliament is likely to vote on later this year.
“The recent bankruptcy of FTX has highlighted the risks inherent in any investment in cryptoassets, especially when the company operates outside of any regulation. These concerns, including for financial players, are shared at EU level,” he wrote.
A member of the Senate Finance Committee also said the country needs to reconsider its simple licensing regime for digital asset providers. Hervé Maurey, who heads the committee for regional planning and sustainable development, proposed an amendment to the current legislation to eliminate a clause that allows crypto platforms to operate without a full regulatory license.
The much-debated Markets in Crypto Assets, or MiCA, bill includes an adjustment period of 12-18 months to prepare for the new laws put in place, meaning the earliest the laws could come into force in full is at the start of 2024 . The EU-wide regulation will provide passporting rights for crypto firms working across the continent.
President of the European Central Bank, Christine Lagarde, also called for MiCA II to regulate activities related to betting and lending of crypto-assets. The term refers to supplementary legislation that builds on the work lawmakers did for the original bill.
