- France is updating its cryptocurrency regulations to align with the broader European standards set by the Markets in Crypto-Assets (MiCA) framework.
- The main financial authority in France, the Autorité des Marchés Financiers (AMF), has introduced a new “enhanced” registration process for digital asset service providers (DASPs).
- The enhanced DASP registration changes will be mandatory from January 2024. Organizations seeking this new registration must comply with the amendments.
France is making changes to its cryptocurrency rules to match the broader European standards set by the Markets in Crypto-Assets (MiCA) framework. These changes are set to take effect next year and are aimed at ensuring consistency with European guidelines.
The main financial authority in France, known as the Autorité des Marchés Financiers (AMF), has announced its plans through its General Regulation and its strategy for digital asset service providers (DASPs).
The goal is to establish an improved registration process known as the “enhanced” process. This announcement was made official on August 10th.
Under this enhanced registration process, cryptocurrency platforms will need to follow a new regulation, specifically Article 721-1-2 of the AMF General Regulation, as reported by Cointelegraph.
This involves implementing mechanisms to handle conflicts of interest, taking on more responsibilities for disclosing information, keeping customer funds separate from platform funds, and being prohibited from using customer funds without their explicit prior consent.
These changes will become obligatory starting from January 2024.
Organizations seeking the enhanced DASP registration must comply with these changes. However, DASPs that successfully obtain registration before January 1, 2024, will be able to continue operating under the previous, simpler rules thanks to a “grandfather clause.”
Just as a reminder, the Markets in Crypto-Assets (MiCA) framework, a comprehensive legislative framework for cryptocurrencies, was approved by the European Parliament in April 2023.