France Aligns with EU Regulations to Enhance Crypto Market
France has announced plans to align its cryptocurrency regulations with the new rules set by the European Union (EU), aiming to bring the bitcoin industry more in line with the EU’s broader framework. The changes are expected to take effect from January 1, 2024, and will implement the pan-European framework established by the Markets in Crypto Assets Act (MiCA).
Key Points:
– The French financial regulator, the Autorité des marchés Financiers (AMF), has issued a statement outlining the steps that digital asset service providers (DASPs) must follow to comply with the enhanced registration requirements.
– France already has a system to register cryptocurrency businesses and is now integrating its regulations with MiCA to provide greater protection and ensure fair business practices.
– New entrants offering regulated cryptocurrency services will need to comply with the AMF’s amended registration criteria starting from January 1, 2024.
– Existing DASPs that secured basic registration before this date will be protected by a “grandfather” clause, allowing them to continue operating under the existing regulatory framework.
– The revised provisions within the AMF General Regulation will cover various aspects relevant to DASPs, including security measures, conflict of interest management, accurate information dissemination, pricing policies, and specific custody rules.
Closing Paragraph:
France’s decision to align its cryptocurrency regulations with the EU’s framework sets an example for other countries in safeguarding users from financial fraud and increasing trust in digital assets. By implementing MiCA, France aims to regulate the crypto market more effectively and ensure a fair and secure environment for investors. These changes will have a significant impact on the cryptocurrency industry in France and potentially influence how other countries approach crypto regulation.
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