Why are cryptocurrency enthusiasts frowned upon in France?

So far, France has been one of the least strict countries in Europe when it comes to crypto regulations. France was considered a pro-crypto zone, with its light licensing regime for crypto companies. But, the authorities could soon make a decision that will change the situation.

Stricter to protect crypto investments

Since the collapse of FTX, more and more governments are putting in place stricter measures. According to a recent Financial Times article, the French government is considering to tighten regulations on cryptos. It appears that the French Parliament will soon analyze an amendment that requires crypto platforms to obtain licenses before offering their services in France.

If Parliament validates the proposal, all crypto companies will have to comply with the Autorité des marchés financiers (AMF). This, from October 2023. They will then provide a series of documents to the AMF in order to obtain its approval to offer crypto services in France. They will therefore have to face stricter controls to operate in the country.

The proposal for the new amendment comes from by Hervé Maurey, a member of the finance committee of the French Senate. Maurey relies on the bankruptcy of FTX. For him, this event brought severalplayers in the French system to consider that things needed to be framed more strictly“.

An amendment that will delete an existing clause

On December 15, CertiK Alert has declared on Twitter : “An amendment has been proposed in France to remove a clause allowing crypto companies to operate without a full license until 2026. Currently, there are over 50 registered companies operating in France without a license“. It is true that until now, crypto companies had the possibility of offer their services on the French market without license.

Certik Alert’s tweet

The clause enabling them to be offered this favorable treatment has been preserved despite the introduction of the MiCA regulation. The current crypto regulations indicate that it should be valid even after the entry into force of the MiCA regulation in 2024.

On December 13, the Senate adopted the amendment proposed by Hervé Maurey. It remains to submit the proposal to the examination of the French Parliament, next year during the month of January. For the Adan association, this amendment indicates that the French legislators renounce a “future industry“. The association brings together a large number of crypto players in the country.

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