Pro-Crypto France Sets to Regulate Crypto Platforms

Crypto businesses in France can voluntarily apply for a full license under the current regulations. That may be about to change. In January 2023, the French Parliament will debate the amendment, ending the favorable treatment of crypto businesses. Following the international trend of tightening crypto regulation in response to recent market failures, France may reevaluate its free licensing for digital asset issuers. That could jeopardize the country’s efforts to establish itself as Europe’s most crypto-friendly nation.

Before 2026, the regulations allow virtual firms to do business nationwide without a complete license. The new plan will require enterprises to acquire a complete license from the financial regulator in October next year.

Hervé Maurey, a senator on the finance committee and a member of the Senate, proposed an amendment on Tuesday that would abolish France’s current plan. Since it will impose companies to obtain a license from the Autorité des Marchés Financiers (AMF) on October 2023, Maurey’s amendment will abolish the option to operate without tough controls.

“FTX’s failure recently highlighted the dangers involved at any coin asset investment, particularly since the firm operates outside of any control,” Maurey stated in the amendment.

Currently Operating Crypto Platforms in France

At least 50 firms operate in France without an AMF license, according to information obtained by Business Insider. Thierry Philipponnat, an ex-AMF member, believes that the degree of protection for investors is “extremely light if not non-existent” under this system.

The Senate approved the change on December 13, and will go to Parliament in January 2023 for further deliberation. The amendment is seen as an indication of “abandoning an industry of the future” by lawmakers in the local industry’s association, Developing the French Digital Asset Industry (Adan).

Emmanuel Macron’s administration is well-known for vocal encouragement of the digital asset sector. Macron expressed his faith in several industrial steps back in April. This was before the second round of the presidential election. Steps include the creation of an NFT policy. In addition, the expansion of the number of tech unicorns in the nation was also in sight. He did, however, express his doubts about the autonomous financial industry.