FameEX Hot Topics | France Considers Expedited Approval of Registered Crypto Companies for Compliance with New EU Regulations

France’s financial regulator, the French Financial Markets Authority (AMF), is considering a “fast track” option for licensed crypto firms to comply with the Markets in Crypto-Assets (MiCA) laws set to be implemented in the European Union (EU). In a statement published on April 21, the AMF welcomed the approval of MiCA and outlined how French regulation will proceed during the transitory period over the next 18 months. During this period, the AMF will focus on guiding French providers of digital asset services (PSANs) as they switch to MiCA regulation. The AMF is currently weighing up options to expedite the approval process for crypto firms to become compliant with MiCA regulations as soon as possible. In particular, the AMF is looking to plug the gap relating to aspects such as fund provision regulations of crypto firms, conflict of interest policies, and the alignment of requested documents required under AMF and MiCA regulation.

The European Parliament voted in favor of passing the MiCA regulatory package on April 20, to establish a clear and consistent regulatory framework for crypto assets among the EU member states. MiCA now needs approval from the European Council in July to be officially adopted as regulation. The regulation is tentatively slated to come into effect from the start of 2025. In France, crypto firms have two licensing options: a “simple” option offering relaxed requirements, and a more stringent “enhanced” option. All 60 of the AMF-registered crypto firms in France are regulated under the relaxed option and will remain that way until they are ported over to MiCA regulation. The stricter option has greater controls surrounding anti-money laundering rules, customer asset custody, reporting to regulators, and providing detailed risk and conflict of interest disclosures as a means to strengthen consumer protection.

The AMF has previously stated that any crypto firm that registers after January 2024 will have to do so under the more stringent option. Additionally, the AMF outlined that any company regulated under either category will only be able to offer its services in France until they are ported over to MiCA. Once approved under MiCA regulation, service providers will be able to benefit from the European passport and provide their services in all EU countries. The AMF’s proposed transitions to MiCA rules have been positively received by the crypto industry. It remains to be seen which fast-track options will be implemented to ensure a smooth transition for crypto firms in France as they prepare to comply with MiCA regulations.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.