A change to legislation has been proposed by Hervé Maurey, a senator from the critical finance committee, to remove a provision that would permit registered cryptocurrency companies to operate domestically without a full regulatory license until 2026.
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| France is being pushed to tighten crypto-friendly regulations |
France has made an effort to rank among the most appealing nations for cryptocurrency businesses, bringing firms like Binance to Paris, according to Reuters Pressure is mounting on France to fill a gap in upcoming crypto regulations that would give it a more extended grace period to entice digital asset companies to establish in the nation with less regulatory monitoring.
His action puts more pressure on the government and its regulators regarding France's supportive position toward #cryptocurrencies. The EU will adopt stricter regulations in 2024, but France intends to keep its current system in place for 18 months.
In this year's market shakeup, popular token values have plummeted, which has been made worse by Sam Bankman-FTX Fried's crypto empire's collapse last month. On Tuesday, criminal accusations were brought against Bankman-Fried by #US prosecutors.
France has worked to position itself as one of the most desirable locations for cryptocurrency businesses, enticing firms like exchange operator Binance to Paris.
The existing system permits cryptocurrency businesses to register in France without obtaining a formal license, allowing them to operate with few restrictions.
According to Maurey, "The FTX collapse was an explosion that contributed to a moment of reckoning and awareness." This made a number of system actors in France believe that things needed to be closely monitored.
His idea would require businesses to obtain a license from the French regulator, the Autorité des Marchés Financiers (AMF), starting in October of this coming year. A license, as opposed to registration, offers consumer protection and necessitates more transparency from businesses on their financial standing and internal control mechanisms. There are about 50 registered cryptocurrency businesses, but none have yet received a license.
Following the demise of #FTX, French MEP Aurore Lalucq sent Finance Minister Bruno Le Maire a letter informing him that platforms could exploit the current regulatory ambiguity under the current system. The FT was informed by the ministry of finance that it was "watching with great interest" the reasons behind and effects of FTX's bankruptcy.
According to critics, consumers may believe that crypto firms are actively being regulated under France's current system. The safety offered by this registration is actually very minimal, if not nonexistent, according to Thierry Philipponnat, who left the AMF board in October.
Stay tuned.