The French financial regulatory body, the Autorité des marchés financiers (AMF), has introduced significant revisions to the country’s existing cryptocurrency regulations. These updated rules will impose more stringent registration criteria on cryptocurrency companies seeking licenses.
In a blog post published on August 9, 2023, the AMF unveiled a series of key amendments, prominently featuring an upgraded registration framework for Digital Asset Service Providers (DASPs).
The AMF explained that DASPs aiming to acquire licences within France will now undergo a comprehensive evaluation encompassing diverse prerequisites. These prerequisites include establishing robust conflict-of-interest management systems, more disclosure obligations, clear separation of client assets from the platform’s assets, and a ban on utilizing client assets without obtaining their explicit prior approval.
The new adjustment is also partly aimed at aligning these firms with the guidelines established by the European Union’s Markets in Crypto-Assets (MiCA) framework. MiCA which was approved MiCA in April 2023 after two consecutive delays, is slated to take effect on December 30, 2024.
However, the AMF’s latest revisions will become effective starting January 1, 2024. The AMF emphasized that applicants seeking enhanced DASP registration must incorporate these changes into their submissions.
The AMF noted that DASPs that secured registration prior to January 1, 2024, will enjoy a “grandfather.” This means that they will continue to operate under the regulatory framework that was in place before this pivotal date.
In a recent development, SG Forge, the cryptocurrency branch of Société Générale, recently secured the top-tier access licence to provide crypto services within France. This achievement positions SG Forge among the ranks of the latest cryptocurrency exchanges in the country to attain this elevated status.
This licence grants SG Forge the ability to secure digital assets, conduct transactions involving the purchase and sale of cryptocurrencies for legal currency, and facilitate trading between various digital assets.
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