France may review its lenient licensing requirements for digital asset providers in light of the global trend toward stricter cryptocurrency regulation in the aftermath of the recent FTX collapse.
According to the Financial Times, Hervé Maurey, a French senator serving on the finance committee, reportedly proposed removing the provision allowing crypto firms to operate without a full license until 2026. The existing system will still permit this option even after the Markets in Crypto Assets Act (MiCA) is signed into law in 2024.
The proposed plan would function similarly to the financial restrictions currently in place, requiring corporations to meet specific requirements before they are permitted to operate. This can entail maintaining sufficient financial reserves and demonstrating that their operations comply with anti-money laundering regulations.
The action follows FTX’s bankruptcy filing last month, which raised concerns about the lack of regulation in the cryptocurrency industry. On December 13, the Senate approved the change, and in January 2023, the Parliament will debate it.
Now, the French government is attempting to improve user protection by establishing a licensing system, which will also ensure that firms are operating within the confines of the law.
The three-year grace period for crypto platforms operating in France could also be revoked. They may be required to apply for a full license as early as next year since French lawmakers want to align themselves with the upcoming European MiCA legislation.
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