By
Tolu Ajiboye
April 23rd, 2024
France views its new crypto registration rules as an enhanced version of its burdensome Senate-endorsed licensing requirements.
According to reports, the country of France seeks to tighten its crypto registration rules next January. This pro-digital currency national agenda will receive endorsement from the French National Assembly as well as its Senate.
A special legislative committee agreed on the registration rule text. The next step is to obtain Senate approval, a process scheduled for February 16th. Following a senate approval, the text would also require approval from the French National Assembly at the end of this month.
France was explicit in its plans regarding prospective registration conditions for crypto firms to adhere to by next January. This memo was published on Friday by a lawmaker committee from both chambers of parliament. However, it should also be noted that the proposed registration conditions failed to drum up the anticipated amount of interest by the French Senate.
Newly Applying Companies to Growing Crypto Space in France to Meet Extra Requirements Under New Registration Proposal
The new French registration proposal suggests that companies applying for the first time to conduct crypto operations must meet additional rules. According to a text from the legislative Joint Committee, these rules relate to internal controls, cybersecurity as well as conflicts of interest. However, as thorough as the present conditions seem, they still fare better than the previous burdensome position taken by the French Senate. This position required that newly applying companies would have to seek a license. So far, no operator has received a license, which suggests how tedious the process can be. Crypto license-seeking in France currently entails background checks on financial resources and business conduct.
Under the French crypto regulations, companies could register with the Financial Markets Authority. This registration would act as a show of compliance with basic money laundering and governance norms.
President of Crypto Lobby Group ADAN Comments on French Crypto Legislative Development
According to ADAN President Faustine Fleuret, the enhanced crypto regulation is a more pragmatic approach than the French Senate’s. However, she also cautioned that an included requirement that demands sophisticated and secure IT systems could pose some challenges. In Fleuret’s opinion, these obstacles could be difficult for small companies to meet and for regulators to effectively command.
Last year, Senator Hervé Murray proposed tightening France’s crypto rules following the sudden implosion of FTX in November. At the time, Murray pointed out:
“The recent bankruptcy of FTX has put a spotlight on the inherent risk of all investment in crypto assets, in particular when the company operates outside of any regulation.”
In addition, this proposition also sought to plug out any loophole that may abound from complying with new European Union rules. These rules, known as Markets in Crypto Assets regulation (MiCA), were accepted last October by a consortium of European councils.
According to the European Union Council, the European Commission, and the European Parliament, the bill seeks explicit information regarding crypto projects. In addition to increased transparency on crypto activities, crypto issuers must publish a revealing “crypto-asset white paper.” Furthermore, the bill also demands that stablecoin companies satisfy capital requirements.