France’s Financial Markets Authority (AMF) has announced that existing crypto companies in the country could benefit from a “fast-track regime” to comply with new European crypto rules. The move follows the recent tightening of crypto registration procedures in France and in preparation for the European Union’s Markets in Crypto Assets law (MiCA), set to take effect from July 2023.
The AMF has proposed a possible “fast-track modular licensing” process between France’s existing regime and MiCA, which includes much tougher governance, consumer-protection, and financial-stability rules. The regulator also plans to bring provisions on reserves, conflicts of interest, custody, and documentation in line with Europe.
Companies already registered in France, including major players such as Binance and Bitstamp, will have an extra 18 months to comply with the higher European norms under MiCA. During this period, these players can continue to offer their services solely to the French public, according to the AMF.
The move is aimed at striking a balance between fostering innovation in the crypto sector and ensuring adequate consumer protection and financial stability. It also recognizes the importance of existing players in the crypto space, who will be given a smoother transition to the new rules.
France is home to one of the most advanced crypto regulatory frameworks in Europe, and the AMF has been proactive in tightening regulations in the wake of FTX’s collapse. The European Parliament recently voted in favor of MiCA, which is expected to set a new standard for crypto regulation in the region.
Overall, the move by the AMF reflects a growing trend of regulatory tightening in the crypto space worldwide, as governments and regulators seek to mitigate risks and ensure compliance with existing laws. It also highlights the importance of collaboration between industry players and regulators in shaping the future of the crypto sector.
