The French National Assembly has approved a new set of licensing rules for crypto firms operating in the country as part of a bill to align French laws with European Union standards.
In the last vote held in the French National Assembly, 109 votes were in favor and 71 against. While the terms have taken a milder form than originally proposed by French lawmakers following the fall of FTX, crypto firms will have to meet more registration requirements than those currently required by the French Financial Market Authority (AMF).
This new move by France aims to align registered crypto firms with upcoming EU crypto laws ahead of schedule. The final European Parliament vote is expected in April.
The strengthened registration process will apply to crypto firms that will register from July 2023. Under current anti-money laundering laws, firms already registered with the AMF will be able to continue operating until the end of the transition period offered by MiCA, (possibly until 2026).
How did the process begin?
In December, Senator Hervé Maurey said that crypto firms that are not registered with the AMF 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. The latest 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.
