French Assembly Votes for Tougher Crypto Licensing
The French National Assembly has made headlines by voting in favor of tighter licensing rules for cryptocurrency firms, with a resounding 109 votes in favor (that’s 60.5% for those counting!). This legislative move aligns local laws with upcoming European Union (EU) standards aimed at creating a more regulated crypto environment. The bill will soon be sent to President Emmanuel Macron, who now has 15 days to decide its fate—this is where the suspense thickens!
What’s in the New Legislation?
We all know crypto can feel like the Wild West sometimes, and the new law aims to tame that spirit. Among its key points, France-based crypto service providers must:
- Comply with stricter anti-money laundering rules
- Segregate customer funds (that’s right, no mixing money like your laundry)
- Follow new guidelines on reporting to regulators
- Provide detailed disclosures about risks and conflicts of interest
All of this is designed to bolster consumer protection in a space that often feels like it’s running on good intentions and a prayer.
Who’s Walking the Tightrope?
A curious nitpick: these new rules won’t apply to the 60 crypto firms already registered with the Financial Markets Authority (AMF). For now, they get to keep playing under the AMF’s watchful eye until the EU rolls out its own regulatory framework through the Markets in Crypto-Assets (MiCA) bill. So, if you’re wondering who gets the golden ticket, the likes of Binance will continue to operate under the AMF until these new laws kick in for newbies registering after July.
The Legislative Push Behind the Change
Hervé Maurey, a member of the French Senate’s finance commission, kicked off this legislative train back in December with a proposal to remove a loophole allowing crypto firms to operate without complete licensing until 2026. Seriously, talk about putting the pedal to the metal!
Adding fuel to the fire was Bank of France governor, Francois Villeroy de Galhau, who highlighted the urgent need for regulation following recent market turmoil. He wants this bill, or at least some semblance of it, to be implemented ASAP. No pressure, Macron!
Looking Ahead: The MiCA Regulations
While wait times can feel like waiting for a new season of your favorite show, the EU is set to vote on the MiCA regulations in April. After a couple of delays that felt longer than a game of Monopoly, these regulations aim to establish comprehensive rules for the crypto market in Europe. If all goes well, we might finally see a structured framework kick off in 2024. It’s about time we get some order in the disorder!
