Cryptocurrency regulation in France is taking another major step forward. Indeed, the French regulator, the Autorité des Marchés Financiers (AMF), has started accepting applications from crypto asset service providers. This move comes ahead of the entry into force of the European Union (EU) rules on Markets in Crypto Assets (MiCA).
Crypto Service Provider Application Details
The AMF announced on its website that it has been accepting applications from crypto asset service providers since July 1. The regulator opened applications about six months before the implementation of the MiCA rules, allowing providers to prepare and comply with the new requirements. The EU plans to implement the MiCA regulation on December 30. The AMF clarified that Ten crypto asset services will require EU authorisation from this date.
These services include custody and administration of crypto assets on behalf of clients, operation of a crypto asset trading platform, and cryptocurrency trading. The list also includes execution of crypto asset orders on behalf of clients, provision of cryptocurrency advice, portfolio management, and offering crypto transfer services.
Compliance and obligations of ssecurity
Crypto asset service providers must comply with a set of obligations under the MiCA Regulation. The AMF emphasizes the need to comply with anti-money laundering (AML) and counter-terrorism financing (CTF) measures, as well as rigorous cybersecurity obligations.
Where applicable, requirements regarding custody of funds and segregation of assets will also apply. The AMF noted that transition periods will be allowed in certain circumstances. However, all EU providers must obtain MiCA authorisation by July 2026.
The new regulations, while strict, are intended to increase trust and security in the crypto asset industry. Providers will need to adapt quickly to comply with the new standards, which could lead to greater transparency and stability in the market. However, this transition will also pose challenges, especially for smaller businesses that may struggle to meet the complex and costly regulatory requirements.
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