The French financial regulator is evaluating “Fast Track” options to enable registered companies to become MiCA complaint as quickly as possible.
The National Financial Regulator has considered a “fast track” option for French-licensed crypto assets to be regulated under upcoming Market in Crypto-Assets (MiCA) regulations.
In a statement released on April 21, the Financial Market Authority (AMF) welcomes the approval of the MiCA. It explains how French regulations will handle the transition period over 18 months.
The main objective of the MFA will be to steer the transition to MiCA regulation for French Digital Asset Service Providers (PSANs).
The AMF said it was considering “fast track” options to enable these companies to comply with the MiCA regulations as quickly as possible.
Regarding MiCA compliance, the AMF fills gaps in issues such as crypto firm fundraising regulations, conflict of interest rules, and the arrangement of requested documents needed under MiCA and AMF regulations.
To the general fulfillment of the cryptocurrency industry, the European Parliament voted in pursuance of the MiCA regulatory package on April 20.
To move forward, the MiCA now needs the approval of the European Council in July to be formally adopted as a regulation.
The regulation is expected to come into force in early 2025 and aims to create a clear and consistent administrative framework for cryptocurrencies among European Union (EU) member states.
Types of Licensing Options in France
In France, cryptographic companies have two licensing options, a “simple” option which offers moderate requirements, and a more demanding “enhanced” option favored by the government and already strictly compliant with MiCA regulations.
The more restrictive option allows for better control of money laundering regulations, custody of client assets, reporting to regulators, and providing detailed information on risks and conflicts of interest to strengthen consumer protection.
The relaxed option will regulate all 60 cryptocurrency companies registered by the AMF in France and will remain so until transitioned to MiCA regulation.
The AMF has formerly stated that any cryptocurrency firm registering after January 2024 must do so under a stricter option.
It should be noted that the AMF has also stressed that any company falling into one of the categories can only offer its services in France until it is transferred to the MiCA.
