The European Parliament recently approved a set of regulations called MiCA. This is causing the French financial authority to look for ways to help companies quickly follow these regulations if they are already registered.
The French Financial Markets Authority (AMF) released a statement on April 21 expressing its happiness with the adoption of MiCA regulations. They also talked about what they will be doing for the next 18 months to help companies adjust to these regulations.
The AMF will focus on helping French companies that offer digital asset services (called PSANs) make the transition to following MiCA regulations.
The AMF wants to make sure that companies following MiCA regulations are also following other important rules, such as how they provide funds and avoid conflicts of interest. They are also working to make sure that the documents companies need to provide to follow both AMF and MiCA regulations are aligned correctly.
Crypto companies can apply for two types of licenses: a “simple” one with less strict rules, or an “enhanced” one with stricter rules. The government wants companies to choose the stricter “enhanced” license, which is similar to following MiCA regulations. Both types of licenses need to be renewed every year.
There are 60 cryptocurrency companies in France that have registered with the AMF. Right now, they follow flexible regulations. They will keep following these rules until they switch to the MiCA regulations.
The MiCA needs to be approved by the European Council in July before it can become an official rule.
The law is expected to start in early 2025. Its main goal is to make a clear and consistent set of rules for cryptocurrencies that all European Union (EU) countries follow.
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