France considers fast-tracking registered crypto firms to new EU rules
A “fast-track” option for licensed crypto firms in France to be regulated under the upcoming laws on markets for crypto-assets (MiCA) has been considered by the country’s financial regulator.
In a statement published on 21 April, the French Financial Supervisory Authority (AMF) welcomed the approval of MiCA and outlined how French regulation will play out during the transition period over the next 18 months.
A key focus of the AMF will be to lead the transition to MiCA regulation for French digital asset service providers (PSANs).
The AMF stated that it is currently considering “fast track” options for these firms so that they can comply with MiCA regulations as soon as possible.
In terms of MiCA compliance, the AMF is looking to close the gap related to aspects such as fund allocation provisions of crypto firms, conflicts of interest and alignment of requested documents required under AMF and MiCA regulation.
To the general delight of the crypto industry, the European Parliament voted to adopt the MiCA regulatory package on April 20.
Going forward, MiCA now needs approval from the European Council in July to be officially adopted as a regulation.
The regulation is currently planned to enter into force from the beginning of 2025 and aims to establish a clear and consistent regulatory framework for crypto-assets among EU member states.
In France, crypto firms have two licensing options; a ‘simple’ option which offers relaxed requirements, and a stricter ‘enhanced’ option, which is preferred by the authorities and is reported to be closely aligned with MiCA regulations already.
The stricter option has greater controls around anti-money laundering rules, customer retention, reporting to regulators and provides detailed disclosures of risks and conflicts of interest as a means of strengthening consumer protection.
Related: What’s next for the EU’s crypto industry as the European Parliament passes MiCA?
All 60 AMF-registered crypto firms in France are regulated under the relaxed option and will remain so until they are transferred to MiCA regulation.
The AMF has previously stated that any crypto firm registering after January 2024 will have to do so under the stricter option.
In particular, the AMF also outlined that any company regulated under both categories will only be able to offer its services in France until they are transferred to MiCA.
“During this period, these operators will be able to continue to offer their services only to the French public,” the statement said, adding that “service providers approved under the MiCA regulation will be able to benefit from the European passport and offer their services in all EU countries.”
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