Like many European countries that are stepping up efforts to have a state-of-the-art legislative framework in the crypto industry, France has just taken an important step in the regulation of digital assets. Discover in the lines to follow, what it is about.
A text that will strengthen the control of crypto companies?
In France, the Senate adopted a new set of rules regarding the registration of crypto businesses, operating in the country. This legislative advance is part of a larger bill. A project aimed at harmonizing French law with European Union (EU) standards. The elected officials adopted the project bill with 109 votes for and 71 against. The next step will be for President Emmanuel Macron to promulgate the text within the next 15 days. It should also be borne in mind that the leader could send the text back to the Legislative Assembly.
Under the new rules, French companies offering crypto services must obtain a more rigorous registration than that currently offered by the Autorité des marchés financiers (AMF), the local regulator of the sector. This measure aims to complement European legislation on crypto markets. This should be voted on by the European Parliament next April. It will, among other things, bring registered French companies into compliance with this law, before the scheduled date.
Softer arrangements?
The new provisions are generally softer than those initially submitted to elected officials. This is justified by the fact that the debates were conducted during the period of the collapse of FTX. At the time, in France, there was a lot of pressure from political decision-makers. The crypto industry in general was also behind this pressure.
The new bill provides that companies registering from July 2023 will be subject to a registration process that ensures compliance in areas such as governance, segregation of funds rules. Companies will also be required to provide clear risk disclosures and implement a well-defined conflict of interest policy.
Some critics have expressed concern that the new regulations could set the bar too high for small businesses and potentially hurt innovation.
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