Crypto Firms In France To Operate With Licenses

In the aftermath of the FTX collapse, regulators across the world are looking to tighten crypto regulations. This time, a french senate member has expressed the need for crypto licensing. Senator Hervé Maurey recently proposed an amendment that crypto businesses should not be allowed to operate without full operational licenses. This is due to the current global market trend and tightening in recent times.

Elimination Clause From Hervé Maurey

A French Senate financial commission member, Hervé Maurey, proposed an amendment to a bill that allowed digital asset providers to operate without a license until 2026. The elimination clause from Maurey proposes that all crypto platforms should be required to get full operational licenses which would allow for tighter regulations of their activities.

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If the amendment passes, no crypto platform will be able to operate outside stringent assessments. As per the present regime, this would stand regardless of the MiCA (Markets in Crypto Assets) laws set to go into effect in 2024.

It would also mean that crypto businesses would have to obtain an operating license from the French regulator, Autorité des Marchés Financiers (AMF) starting October 2023, according to the proposal.

Need For The Amendment

Thierry Philipponnat, a former member of the AMF association, stated that the current security level of investors is relatively low. He backed up his statement by recalling the number of crypto platforms in the country without proper protection.

He said, at the moment, the country has a minimum of 50 registered digital currency firms. However, all these companies currently operate without an AMF operating license, which jeopardizes the safety of crypto investors.

This is where the need for the amendment comes in. The Senate adopted this decree on Dec. 13, 2022, awaiting the deliberations of the Parliament sometime in January 2023.

Meanwhile, Adan (Developing the French Digital Asset Industry) views the amendment differently. The French crypto lobbyist group said that based on its viewpoint, the action of the Senate suggests that it is backtracking on its previous commitment to make France a crypto hub.

However, despite opposing reactions, the Senate remains adamant about its decision as long as investors’ protection issues are tackled.