Why France’s Latest Crypto Regulations Could Change the Game: Learn More

France will impose stricter registration rules for cryptocurrency firms from January 2024, according to a proposal passed by the National Assembly today (Tuesday).

What happened: The new rules will require additional measures related to internal controls, cybersecurity and conflicts of interest with the aim of strengthening France’s crypto regulatory regime, Coindesk reported.

The move comes amid the recent market turmoil and as the country prepares to implement new European Union cryptocurrency laws.

Positioning itself as a crypto hub, France has already attracted firms like Binance and Bitstamp, which have successfully registered with the country’s Financial Markets Authority (AMF).

Registration includes compliance checks of governance and anti-money laundering norms and is mandatory for all companies offering trading or custody services in France.

To date, no company has received a license, which is a more rigorous process than registration and involves compliance with financial norms.

Also Read: Illegal Crypto Transaction Volume Hits All-Time High in 2022: Which Crimes Are Rising?

Sen. Hervé Maurey first proposed in December to strengthen France’s crypto regulatory framework, citing the collapse of cryptocurrency exchange FTX and the need to avoid loopholes before the EU’s Crypto Asset Markets Regulation (MiCA) comes into force .

The industry expressed concerns about the proposal, but regulators backed the move.

A compromise was eventually reached and both chambers of the French Parliament agreed on a proposal that would impose additional registration requirements from January 2024 but would not oblige companies to obtain a licence. The Senate approved the proposal on February 16.

Maurey stated, “We are not here to prevent these activities from developing, but to prevent them from being used for money laundering, tax evasion or terrorist financing.”

The strengthened regulatory framework is expected to attract more crypto firms to France while ensuring the industry operates in a safer and more regulated environment.

Continue reading: Former FTX Technical Director Pleads Guilty to US Criminal Charges

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