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Bank of France governor calls for mandatory crypto firms licensing in 2023

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TL;DR Breakdown

  • The governor of France’s central bank has called for more strict guidelines for obtaining crypto licenses.
  • France may be unable to participate fully in the cryptocurrency industry due to stricter regulations.

According to a Bloomberg article on January 5, the governor of France’s central bank has called for more strict guidelines for obtaining crypto licenses. Francois Villeroy de Galhau, governor of the Bank of France, said last week that France should establish restrictions as soon as possible.

In a speech, Villeroy de Galhau stated that the cause of all the trouble in 2022 is a single, uncomplicated idea: that France should switch from just registration of DASP to compulsory licensing as soon as possible.

Full Digital Asset Service Provider (DASP) licensing is presently optional in France, and according to Bloomberg, no French firms have obtained the full license. The Financial Markets Authority (AMF) of the nation has instead granted a less comprehensive “registration” to roughly 60 entities, according to a study released today.

One of those firms is Binance, which was granted authorization to conduct business in France in May. On the AMF website, you can view other registered firms.

Crypto regulations and how they have affected industry adoption in France

Villeroy de Galhau is not the only government representative in France who has called for more rules. Hervé Maurey, a senator, put forth a change in December that would eliminate the “registration” option. Maurey called the FTX collapse a moment of “reckoning and awareness” and highlighted it as one justification for stronger rules.

Even if particular individuals do not succeed in introducing tighter regulations, future Europe-wide rules will likely make full DASP licensing mandatory in 2026.

France may be unable to participate fully in the cryptocurrency industry due to stricter regulations. The DASP program mentioned above is frequently referred to as having a “light touch,” and France also maintains an ICO visa program that permits fresh token sales. As a result, France’s policies are now acknowledged as being fairly crypto-friendly.

However, France also has a variety of tight regulations that can prevent the expansion of the cryptocurrency industry, such as limitations on cryptocurrency advertising and a flat tax of 30% on all revenue from crypto investments.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Lacton Muriuki

Lacton Muriuki

Lacton is an experienced journalist specializing in blockchain-based technologies, including NFTs and cryptocurrency. He dabbles in daily crypto news rich with well-researched stats. He adds aesthetic appeal, adding a human face to technology.

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