The “enhanced” registration requirements will be effective from January 1, 2024.
In a bid to conform to the recently finalized Markets in Crypto Assets (MiCA) regulation, France has just revised its requirements for crypto firms. The country’s financial regulator AMF revealed this on Thursday, as countries in the European Union (EU) stand in line to implement the new rule which will take effect in about one and a half years.
For what it’s worth, France already has a seemingly robust licensing regime for crypto firms. Therefore, it has been a place of high interest to many firms looking to register ahead of implementing MiCA. That is considering that firms that have duly registered under the current licensing regime may not have any need to be MiCA-compliant when the rule takes effect.
MiCA Regulation: How’s the AMF Preparing?
According to AMF, the “enhanced” registration requirements will be effective from Jan. 1, 2024. And, it will be mandatory for “new players” that may want to offer any digital assets services. About the old players, however, the regulator said:
“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.”
Per the AMF, the amendment to its rule covers diverse areas that seek to ensure that digital asset service providers conduct their businesses in good faith. Its revised rule, for instance, bans crypto firms from using client assets without their express permission. Also, it requires that digital asset service providers issue clear and non-misleading information about their operations. That is as it pertains to their pricing policies, custody provisions ( proper differentiation between client assets and own assets), and security and control systems. And, lastly, the amended rule also seeks for these firms to establish systems for managing conflicts of interest.
Although Binance and Hex Trust are registered with the AMF, they were recently joined by Societe Generale’s crypto division which recently bagged the license as well.
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