Bank of France Governor Francois Villeroy de Galhau has suggested stricter regulatory standards for cryptocurrency firms, potentially hindering the sector’s efforts to establish a stronger presence in Europe.
On January 5, de Galhau stated that France shouldn’t wait for future European Union (EU) cryptocurrency regulations and instead establish mandatory licensing for regional digital asset service providers (DASPs) as soon as possible rather than just requiring registration.
Villeroy 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.”
At the moment, firms that provide cryptocurrency trading and custody must register with the Financial Markets Authority (AMF), the nation’s market regulator.
Currently, firms that provide cryptocurrency trading and custody services must register with the Financial Markets Authority (AMF), the nation’s market regulator, although obtaining a DASP license is voluntary. Those with a DASP license must follow specific rules concerning how their firms should be organized, run, and funded.
A DASP license is voluntary, and those who hold one are obligated to adhere to a number of rules regarding how firms should be organized, run, and funded. AMF has registered 60 crypto companies, but none of them currently holds a DASP license.
In December, Hervé Maurey, a member of the Senate Finance Commission, suggested eliminating the provision that allows businesses to operate without a license.
Suppose the Markets in Crypto-Assets (MiCA) is approved and a licensing framework is established. In that case, firms may continue to operate in France without a license until 2026 under current legislation.
The amendment will be discussed in Parliament starting in January, with a final plenary vote on MiCA scheduled for February 2022. European Parliament member Stefan Berger stated that the lengthy legal document had caused a significant amount of work for lawyer linguists, leading to the delay in the vote.
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