France Updates Crypto Regulations in Light of MiCA – France’s financial regulatory authority is revising its rules for providers of digital asset services, in preparation for the expected adoption of the MiCA regulations by the European Union by the end of 2024. Starting from January 1, 2024, specific digital asset service providers (DASPs) in France will need to adhere to more stringent registration criteria, as declared by the Autorité des Marchés Financiers (AMF) on Thursday.
The heightened criteria apply to digital asset service providers (DASPs) aiming to offer the complete set of four crypto-related services specified by the AMF: safeguarding, exchanging for legal tender, digital asset trading, and operating a digital asset trading platform. Currently, the only company authorized for all four services is SG-Forge, the cryptocurrency division of Societe Generale.
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SG-Forge explained to Blockworks in July that being authorized, as opposed to merely registered, represents the most comprehensive form of regulatory approval granted by the AMF. DASPs providing the complete range of four services will be required to establish effective security measures, internal controls, and conflict of interest management systems.
Furthermore, they will be obliged to disclose transparent pricing policies publicly and implement precise custody arrangements. This involves committing to segregate client and company assets and refraining from utilizing client assets without obtaining explicit consent. Digital asset service providers (DASPs) that secured basic registration prior to January 1, 2024, will maintain their status under the regulations in place before that date, as stated by the AMF.
Additionally, this updated framework offers the advantage of harmonizing the criteria for a French DASP license with the European authorization procedure for crypto-asset service providers (CASPs) according to MiCA, which gained approval in April 2023. The newfound alignment is anticipated to enable the implementation of an expedited process for CASP authorization, as highlighted by the AMF.