France’s Regulator Amends Crypto Registration to Suit MiCA Regulation

France’s financial regulatory body, AMF, announced on Thursday that it had amended its crypto registration requirements to suit the new Market in Crypto Assets (MiCA) rule.

The Autorite des Marches Financiers (AMF) will incorporate the strict requirements that the soon-to-be-implemented MiCA regulation impounds on crypto firms seeking to register in France, it stated in a website post. France already has functional licensing requirements but will amend them to suit the new regime, which will take effect in 2025.

France Welcomes MiCA

The French regulator noted that its licensing guidelines will undergo changes, creating an enhanced registration requirement for Digital Asset Service Providers (DASPs) in the country.

According to AMF, it would access DASPs seeking licenses in the country on areas including adequate security and internal control systems, systems for managing conflicts of interest, clear, accurate, and non-misleading information, public pricing policies, and specific custody provisions (segregation of client assets vs. own assets). The refined regulation will also prohibit firms from using clients’ assets or funds without their consent or approval.

Quick Approval for Official Operators

The French regulator stated that it welcomes new firms intending to gain official licenses in the country to apply, while assuring DASPs who were formally licensed to operate in the country before now that it would fast-track their license approval if they reapplied. AMF stated it would place DASPs that applied before the date of effect on a peculiar benefit tagged the “grandfather clause.”

“As a reminder, DASPs that obtained a simple registration before Jan. 1, 2024, benefit from a ‘grandfather’ clause and continue to be subject to the framework applicable before this date,” AMF stated.

The AMF will effect the changes on January 1, 2024, a few months before the MiCA law’s rollout. Licensed exchanges like Binance, Bitstamp, and Crypto.com will have to reapply before that date to enjoy the grandfather clause.