The head of the French central bank has made the case for making it compulsory for crypto service providers to obtain a license. This move follows an increase in activity in the sector over the last year.
France’s Galhau Proposes Replacing Registration with Licenses for Cryptocurrency Firms
Banque de France Governor Francois Villeroy de Galhau has suggested that crypto companies must be subjected to stricter regulatory requirements, proposing that registration be done away with in favor of licenses.
To date, around 60 different cryptocurrency platforms have registered with the Autorité des Marchés Financiers (AMF), the country’s financial markets authority, which includes global players like Binance, the world’s largest crypto exchange.
Although licensing is currently voluntary, no licensed digital asset service providers (DASPs) have been registered in France yet. Villeroy de Galhau said in a statement to industry representatives on Thursday:
The mess of 2022 is a reminder of a simple belief: It is desirable that France does not wait to register for a DASP license, but instead make it mandatory.
According to the report, the AMF requires that digital asset service providers obtain a license in order to meet certain standards regarding organization, financial resources, and business conduct.
The proposal is based on a deal made last summer between key EU institutions and member states, reaching an agreement on new Crypto Asset Markets (MiCA) legislation, and new anti-money laundering regulations for the industry.
Companies will have an additional 12-18 months to comply with the regulatory package, which is expected to come into effect in 2023. Brussels also wants platforms that process cryptocurrency transactions for EU residents to be reported to the Union’s tax authorities.
Do you think France will introduce a licensing system for cryptocurrency companies before MiCA comes into effect? Please share your expectations in the comments section below.
Images credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is intended for informational purposes only. Neither the company nor the author are responsible, directly or indirectly, for any damage or loss that may be caused or alleged caused by or in relation to the use of, or reliance upon, any content, goods and services mentioned in the article.
