French legislators have taken a gentler stance on crypto licensing, granting operators more time to comply with new Europe-wide regulations.
Last night, the National Assembly backed an amendment by centrist politician Daniel Labaronne that will permit current crypto companies to stay in operation without a full license until European Union’s crypto regulations are executed.
France has implemented a two-tier system for crypto companies. All crypto operators must register as crypto asset providers but don’t necessarily have to gain a full license. Although 60 providers are registered with the regulatory body Autorité des Marchés Financiers (AMF), none of them have opted for full authorization.
Despite rejecting Senator Maurey’s amendment that would have mandated new market entrants to commence the process of acquiring full authorization this year, lawmakers eventually voted for an amendment requiring aspiring crypto companies to obtain a full license if they launch in 2024. The move is expected to accelerate France’s crypto adoption of new higher regulations projected to be imposed by the EU’s Markets in Crypto Assets (MiCA) in 2026.
Faustine Fleuret, President and CEO of the French crypto industry association Adan, stated that this is a judicial decision designed to create the optimum environment for innovation in France while ensuring user safety. This move also emphasizes the importance of exhibiting professionalism within the sector as it moves toward uniform European regulations.
Labaronne, who proposed the most recent amendment, declared that while FTX’s bankruptcy highlighted the need for investor protection, more time was required to enforce stricter regulations.
New rules offer crypto firms breathing room in France
Labaronne’s accepted amendment marks the conclusion of a prolonged and intense debate between French lawmakers and the crypto industry. France, after all, has become renowned for fostering an environment welcoming to cryptopreneurship.
In May 2022, Binance CEO Chanpeng “CZ” Zhao was thrilled to learn that his crypto exchange had been approved in France. CZ believes the country is poised to take on a leading role in cryptocurrency across Europe and beyond.
Crypto-based firms such as Binance and Crypto.com can now relax until MiCA is implemented, providing them with a much-needed opportunity to prepare. The European Union is poised to potentially pass a set of crypto regulations this year that would unify the approach toward digital currencies throughout the 27 member states. If approved, it could take up to 18 months for these rules to be effectively implemented.
