French AMF aims to find a solution in transitioning PSANs over the next 18 months.
France's financial regulator is considering a "fast track" for licensed crypto firms to quickly adhere to the soon-to-be-implemented EU's Markets in Crypto-Assets (MiCA) regulations.
On April 21st, the French Financial Markets Authority (AMF) announced that it's exploring ways to swiftly transition providers of digital asset service (PSANs) to MiCA regulation during the upcoming 18-month transitory period.
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The French authority aims to ensure these companies can become compliant with the new rules in the shortest time possible.
As part of its efforts to streamline compliance, the AMF focuses on bridging the gaps in areas like crypto firm fund provision regulations, conflict of interest policies and aligning required documents under both AMF and MiCA regulations.
The move from French authorities comes as the European Parliament overwhelmingly approved the MiCA regulatory package on April 20th.
Before being implemented, the regulation is now awaiting the European Council's approval in July. The MiCA regulation aims to establish a clear and consistent framework for crypto assets across the European Union (EU) member states, with implementation expected by early 2025.
Currently, crypto firms in France have two licensing options: a "simple" option with fewer requirements and a more rigorous "enhanced" option, which is closely aligned with MiCA regulations and favored by the government.
The latter option provides stricter consumer protection measures by enforcing anti-money laundering rules, customer asset custody, regulatory reporting, and detailed risk and conflict of interest disclosures.
All 60 AMF-registered crypto firms in France are regulated under the first option and will continue to be until they transition to MiCA regulation. The AMF emphasized that any crypto firm registering after January 2024 would have to follow the more stringent option.
As France looks to expedite the transition of its licensed crypto firms to the new EU rules, the future of the crypto industry in the region appears to be taking shape with clearer and more consistent regulations.
