France to vote on mandatory licensing for crypto firms

On 24 January, the National Assembly of France will vote on mandatory licensing for companies related to digital assets. The Block reports.

If approved, the new regime would take effect in October — ahead of EU-wide rules under the comprehensive regulation of crypto-asset markets (MiCA). The latter will come into force at the end of 2024.

«the bankruptcy of FTX revealed the risks inherent in any investment in crypto assets, especially when the company operates outside any regulation», — говорится в сопроводительном комментарии к законопроекту.

The National Assembly will also consider proposals to move the deadline for licensing to January 2024 and replace the mandatory license with its simpler variant — a general registration process with additional consumer protections and corporate controls.

Currently, crypto firms prefer to register with the AMF rather than obtain a license. The list currently includes присутствуют 60 фирм.

To obtain a full license from AMF, applicants must secure liability insurance or minimum capital, establish internal controls and follow cybersecurity protocols along with other organizational requirements.

So far, none of the firms has managed to meet these criteria.

Regardless of which amendment lawmakers adopt, already-registered firms will be able to continue operating until the end of the transition period (presumably until early 2026).

The final sentence: The final vote on cryptocurrency regulation in the EU has been postponed until April.

Earlier, BIS experts published a bulletin in which they examined the risks associated with cryptocurrencies and proposed three paths for regulators.

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