France Leads the Way in Crypto Regulation, Issues Licenses to Service Providers
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Loading... - Rurik Popov
- 09 Aug 2024
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France has taken a significant step forward in regulating the cryptocurrency industry, becoming the first major European Union economy to issue licenses to crypto service providers. This move comes ahead of the implementation of the EU's Markets in Crypto Assets (MiCA) regulations, which are expected to become more comprehensive by the end of the year.
The French Financial Markets Authority (AMF) has outlined ten key aspects of the legislation, including provisions related to the custody and administration of crypto-assets on behalf of clients, as well as the operation of crypto-asset trading platforms. The AMF has already registered 74 companies under its own regulatory framework as of May last year.
Circle, a leading cryptocurrency company, has been conditionally registered as a Digital Asset Service Provider (DASP) with the AMF. To fulfill the conditions of its registration, Circle has applied for an Electronic Money Institution license, which will enable it to operate in France and bring its European operations under full EU oversight.
France's established framework for fintech and digital asset innovation has made it an attractive destination for companies like Circle, which is seeking to secure both a full DASP license and an Electronic Money Institution license in accordance with the standards set by the Autorité de Contrôle Prudentiel et de Résolution (ACPR).
This move is significant, as it prepares Circle for the implementation of the MiCA regulatory framework, which will require companies to hold a Crypto-Asset Service Provider (CASP) license to operate in the EU starting in July 2026. France's proactive approach to regulating the cryptocurrency industry is likely to set a precedent for other EU economies, such as Germany, Italy, and Spain, which have yet to make official announcements regarding the licensing process.
