AMF Implements Amendments to Digital Asset Regulation

France’s financial regulator AMF announces amendments to digital asset regulatory regime

France’s financial regulator, Autorité des Marchés Financiers (AMF), has made key amendments to its digital asset regulatory regime in response to the Market in Crypto Asset (MiCA) regulation. These amendments will take effect from January 1, 2024, and will impact both the General Regulation and the registration process for Digital Asset Service Providers (DASPs).

Enhanced registration processes for digital asset companies outlined in Article 721-1-2 of the AMF General Regulation
Timely disclosures of new developments and strict rules against commingling of user assets
Warning against the use of customer assets without explicit consent
Management of conflict of interest issues between companies and customers
Modified version of the law for DASPs with existing registrations

The new regime, starting in 2024, will apply to new registrations, while existing DASPs will be subject to a slightly modified version of the law. The Market in Crypto Asset (MiCA) regulation, which has been praised for its comprehensive approach to regulating virtual assets, will be implemented in phases between 2024 and 2025. The success of MiCA has already led to similar frameworks being considered in other jurisdictions, with some calling for regulatory clarity in the United States to prevent a talent exodus.

Hot Take:

France’s AMF is taking proactive steps to enhance its digital asset regulatory regime in line with the MiCA regulation. These amendments aim to promote investor protection and address key issues such as the commingling of user assets and unauthorized use of customer assets. By implementing stricter rules and disclosure requirements, France is positioning itself as a leader in regulating digital assets. The success of MiCA has already influenced other jurisdictions, highlighting the need for comprehensive regulations to ensure the growth and stability of the crypto industry.