The French government is taking steps to regulate the cryptocurrency market by passing new legislation imposing stricter licensing rules on crypto firms operating in the country. The proposed bill received majority support in the National Assembly, with 109 votes in favor and 71 against. However, it still requires President Macron’s signature to become law.
The bill aims to align local cryptocurrency regulations with the proposed standards of the European Union (EU). If the new legislation is signed into law, France-based cryptocurrency service providers must comply with stricter anti-money laundering rules, provide detailed risk disclosures, and follow new reporting guidelines.
However, the new rules will not affect the 60 crypto firms registered with AMF. It will only apply to cryptocurrency firms reporting from July 2023 onwards.
Hervé Maurey, a senator from the French Senate who serves on the finance committee, first submitted the measure in December. He suggested removing a provision that enabled cryptocurrency firms to function until 2026 without a full license.
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While the EU’s Markets in Crypto-Assets Act (MiCA) will likely provide a blueprint for cryptocurrency market regulation, Villeroy de Galhau emphasized that France could not wait for more comprehensive laws enacting the licensing regime for digital asset service providers.
The French Senate approved the measure. President Macron has 15 days to sign or remand it. If signed into law, the stricter licensing rules for new cryptocurrency firms would take effect from July 2023.
Stricter Licensing Rules Set To Impact Crypto Firms In France
The passage of the bill is expected to bring about a significant change in the bitcoin market in France. The new regulations will offer excellent consumer protection and strengthen anti-money laundering measures. However, they could hinder new crypto firms’ entry into the market.
If the existing crypto companies comply with the AMF’s rules, they will be largely unaffected. However, the stricter licensing requirements for new firms could limit the industry’s growth in France and make it more challenging for startups to enter the market.
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Overall, the bill’s passage highlights the growing need for cryptocurrency regulations worldwide as governments seek to balance the potential benefits of digital assets with the need for consumer protection and financial stability.
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