France Will Tighten Cryptocurrency Regulations Next Year
On Friday, a committee of legislators from the French Senate and National Assembly published plans to tighten cryptocurrency regulations in France beginning in January 2024. These new laws are more relaxed than initially proposed by the Senate but still enforce stricter conditions for crypto firms operating within the country.
According to the Planned Regulation, Companies Must Meet More Qualifications
Companies that are recently submitting applications must abide by extra cryptocurrency regulations in terms of internal controls, cybersecurity, and conflicts of interest, as stated by the Joint Committee. This is less stringent than what was previously proposed by the Senate, which would have necessitated businesses to receive a license first. The text finalized by the special legislative committee should be approved both in the Senate on February 16th and National Assembly on February 28th, respectively.
In France, companies can register with the Financial Markets Authority to demonstrate adherence to essential money laundering and governance regulations. Although no company has acquired a license yet – which is more challenging as it necessitates evaluations of financial resources and business conduct- registering provides them with legal protection.
New Cryptocurrency Regulations Can Be Difficult for Small Companies and Regulators
ADAN’s President, Faustine Fleuret, said to CoinDesk that the amended registration process was a more sensible choice than what the Senate proposed. Nevertheless, she cautioned that complying with specific requirements, such as sophisticated IT systems, could be a struggle for small companies and difficult to oversee by regulators.
This decision came after Senator Hervé Maurey last year recommended tightening cryptocurrency regulations to prevent similar incidents like FTX from happening again, along with ensuring compliance with new European Union rules called Markets in Crypto Assets regulation.
Maurey’s plans would have necessitated any unregulated crypto provider to acquire a license as of October, which industry lobbyists claimed could be unmanageable.
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