Cryptocurrency investors were concerned that stricter rules would be imposed on cryptocurrencies as the new EU legislation was drafted. In France, there have been calls for stricter regulations for weeks, and a new regulatory system for cryptocurrency companies put to a vote on Tuesday. The French National Assembly ruled with 61 votes in favor and 33 against that cryptocurrency firms operating in France will have to follow consumer protection rules.
Crypto companies applying for registration after Jan. 2024 will abide by rules such as managing conflicts of interest, separating client assets, and publishing their fees. According to Daniel Labaronne, author of the amendment, this new decision is in preparation for MiCa and stands for a halfway between registration and full licensing.
The decision may lead to relief in the crypto industry as it represents a softening of the stance favoring a heavier condition for crypto companies in France.
What Happened?
In December, Senator Hervé Maurey said that crypto firms that are not registered with the AMF (Financial Markets Authority in France) until Oct. 1, 2023 must obtain a license, which no crypto firm has yet managed to obtain, requiring extra controls over governance and financial management. On the other hand, crypto advocates expressed their concerns to supporters of Maurey's view, saying that the requirements to secure a license, including being insured and meeting cybersecurity norms, would place unreasonable burdens on the crypto industry and regulators.
