Autorité des Marchés Financiers (AMF), the French financial markets regulator, has unveiled changes to local crypto regulations in order to comply with the European Union’s Markets in Crypto Assets (MiCA) regime.
AMF Modifies the Registration and Licensing Framework for DASPs
in blog post The Arab Monetary Fund, published on Thursday, August 10, announced the introduction of an “improved” registration framework for Digital Asset Service Providers (DASPs) and changes to local DASP licensing requirements.
According to the AMF, digital asset service providers looking to obtain a license in France will be assessed for a wide range of requirements, including “adequate security and internal control systems, systems for managing conflicts of interest, information that is clear, accurate and not misleading, general pricing policies, provisions Specific custodianship (separation of client assets vs private assets).
These requirements will also imply prohibiting the use of client assets without their express prior consent among other things.
This ‘enhanced’ registration framework is due to come into force from January 1, 2024. It will be mandatory for new companies seeking to provide any regulated services in France.
The French financial regulator also noted that the amendments will facilitate a “fast-track procedure” that will be used towards licensing with approval those digital asset service providers already operating in the country.
The Arab Monetary Fund stated:
As a reminder, DASPs who obtained a simple enrollment before January 1, 2024 benefit from the “grandparent” clause and continue to be subject to the framework applicable prior to that date.
In July, it awarded the Autorité des Marchés Financiers The first encryption license to the crypto arm of Societe Generale. Meanwhile, digital asset service providers such as Binance, Bitstamp and Hex Trust are only registered with the regulator.
France continues to transition to the MiCA system
MiCA is a “comprehensive” set of rules for digital assets approved by the European Parliament to regulate the crypto landscape within the EU bloc.
Countries under the European Union, including France, are looking forward to implementing these new regulations for digital assets and companies that aim to operate in the European market.
In its latest blog post, French regulator AMF admitted that the “enhanced” recording framework is part of its preparation for the MiCA system.
The organizer noted in a statement:
These changes, which will be implemented from January 1, 2024, are intended to anticipate the transition to the European Regulation on Markets in Crypto Assets (MiCA) by amending the provisions regarding licensed DASPs.
There have been preparations – from all sides – in anticipation of the market in crypto-asset regulation, which will kick off in 2024.
The European Securities and Markets Authority recently released the first edition of its advisory package, seeking input from various crypto entities on the most effective way to implement the MiCA regulations.
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