After recent market failures like FTX, France may reassess its lax licensing requirements for issuers of digital assets. The development would cast doubt on France’s efforts to present itself as one of Europe’s most pro-crypto states, as per a Financial Times report.
A proposal to eliminate a clause allowing crypto exchanges to function without a full license until 2026. It was made by Hervé Maurey. a senator from the finance committee of the French Senate. Even after the Act (MiCA) enters into force in 2024, the current system maintains this possibility.
With effect from October 2023, exchanges have to apply for licenses from the AMF. To eliminate their ability to operate without being subject to strict regulations. At least 50 crypto businesses are registered in France and working without AMF authorization.
On December 13, the French Senate approved the proposal, which will now be discussed in Parliament in January 2019.
One of France’s oldest banks, SG Forge, received approval from the country’s financial watchdog to offer bitcoin services back in October. In March, France granted Binance’s request for authorization to conduct business there.
In Addition, the French MPs see the amendment as an indication of abandoning a future-looking industry. Additionally, developing the French Digital Asset Industry.
The Emmanuel Macron administration, which recently began its second term as president, is known for its outspoken backing of the digital assets sector.
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Moreover, Macron declared his support for several industrial initiatives before April’s second round of the presidential election. The development of an NFT policy, the expansion of the European metaverse, and the growth of the nation’s tech unicorns are a few of these. In addition, he did express his doubts about the banking industry’s self-regulation.