The French Financial Markets Authority (AMF) has announced that it is considering a “fast track” option for licensed crypto firms in France to become compliant with the upcoming Markets in Crypto-Assets (MiCA) laws as soon as possible. The AMF’s announcement was published on April 21 and welcomed the approval of MiCA. It outlined how French regulation will proceed during the transitory period over the next 18 months.
The AMF’s focus will be guiding the switch-over to MiCA regulation for French providers of digital asset services (PSANS). To achieve MiCA compliance, the AMF is considering bridging the gap relating to aspects such as fund provision regulations of crypto firms, conflict of interest policies, and the alignment of requested documents required under AMF and MiCA regulations.
The European Parliament recently voted in favor of passing the MiCA regulatory package on April 20, which is a source of industry-wide pleasure for the crypto industry. However, MiCA will need approval from the European Council in July to be officially adopted as a regulation. MiCA regulation is tentatively slated to come into effect from the start of 2025 and aims to establish a clear and consistent regulatory framework for crypto assets among the European Union (EU) member states.
In France, crypto firms have two licensing options: a “simple” option offering relaxed requirements and a more stringent “enhanced” option favored by the government, which is reported to be closely aligned with MiCA regulations already. The stricter option has greater controls surrounding anti-money laundering rules, customer asset custody, reporting to regulators, and providing detailed risk and conflict of interest disclosures as a means to strengthen consumer protection.
All 60 of the AMF-registered crypto firms in France are regulated under the relaxed option and will remain that way until they are ported over to MiCA regulation. The AMF has previously stated that any crypto firm that registers after January 2024 will have to do so under the more stringent option.
However, the AMF clarified that any company regulated under either category will only be able to offer its services in France until they are ported over to MiCA. “These actors will be able, during this period, to continue to offer their services to the French public only,” the statement reads, adding that “service providers who are approved under the MiCA regulation will be able to benefit from the European passport and provide their services in all EU countries.”
The implementation of MiCA regulations is expected to be a significant milestone in the European crypto industry. The regulation is intended to provide a unified regulatory framework for crypto assets for all EU member states, which will promote transparency and protect consumers from fraud and other criminal activities.
In summary, the AMF’s consideration of a “fast track” option for licensed crypto firms in France to become compliant with MiCA regulations aligns with the broader push towards adopting more uniform crypto regulations across Europe. Crypto firms operating in France should prepare for the transition to occur within the next 18 months, and firms that are not currently licensed should assess their options and ensure that they are meeting regulatory requirements.
