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September 26, 2023

France Amends Crypto Regulatory Framework In Line With MiCA Licensing Rules

The French government has amended its cryptocurrency regulatory framework to bring it into compliance with the new European MiCA licensing rules. The revisions introduced by the Autorité des marchés financiers (AMF) aim to introduce rules for crypto-businesses to operate legally in France. The amendments to the cryptocurrency regulations come as the European Union (EU) prepares to implement MiCA, the Markets in Crypto-Assets Regulation. MiCA, which is a revised version of the previous Markets in Financial Instruments Directive (MiFID), is set to go into effect in July 2021. MiCA sets out a framework for the digitization of financial assets such as crypto assets, including rules on the issuance and sale of digital coins. Under the AMF's revised rules, crypto-businesses will need to obtain a license in order to legally operate in France. Companies that provide custodial services, such as crypto-wallets, crypto-trading platforms and other related services, will also need to obtain an authorization to operate in the country. In addition, the rules introduced by the AMF also stipulate that crypto-businesses need to comply with anti-money laundering requirements, as well as investor protection and cybersecurity standards. The rules also impose capital requirements for intermediaries, which can vary depending on the type of services being offered. The French government's move to update its cryptocurrency regulations is part of a wider trend across Europe to bring the region's crypto-industry into compliance with MiCA. Italy, for example, has recently introduced a similar regulatory framework for crypto-businesses. Switzerland is also poised to implement a new set of regulations designed to bring the country's crypto-industry in line with MiCA.