Bank of France Governor Calls for Mandatory Licensing for Crypto Companies

Bank of France Governor Calls for Mandatory Licensing for Crypto Companies – Bank of France Governor Francois Villeroy de Galhau has urged for imposing stronger regulatory restrictions on crypto firms. In reaction to the recent volatility in the sector, he urged that licensing must replace the current registration process. De Galhau also thinks that Paris should not hesitate but act even before the upcoming EU regulations take effect and make it obligatory for Digital Asset Service Providers (DASPs) to obtain licenses from the French government, Bloomberg reported.

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The Autorité des Marchés Financiers (AMF), France’s financial markets authority, has so far registered over 60 cryptocurrency-related platforms, including global players such as Binance, the world’s largest cryptocurrency exchange. Licenses are still optional, and there are currently no licensees among France-registered digital asset service companies.

Speaking to representatives of the financial sector on Thursday, Villeroy de Galhau stated: “All the disorder in 2022 feeds a simple belief: it is desirable for France to move to an obligatory licensing of DASP as soon as possible, rather than just registration.” Digital asset service providers which want to be granted a license are required by the AMF to comply with certain standards in terms of organization, available financial resources and business conduct, the report notes.

The governor’s recommendation comes after EU institutions and member states reached agreement last summer on the new Markets in Crypto Assets (MiCA) law and a set of new anti-money laundering regulations for the industry. The regulatory package is anticipated to go into effect in 2023, but businesses will have an additional 12 to 18 months to comply. Brussels would also like to require platforms that process crypto transactions for EU residents to report to EU tax authorities.

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