France updates crypto regulations in light of MiCA

Societe Generale’s SG-Forge became the first crypto firm to gain a full license in France back in July

article-image

rawf8/Shutterstock modified by Blockworks

share

France’s securities regulator is updating its regulations for digital asset service providers, in anticipation of the European Union implementing MiCA by late 2024.

The changes, which go into effect Jan. 1, 2024, will require certain digital asset service providers (DASPs) in the country to abide by “enhanced” registration requirements, the Autorité des Marchés Financiers (AMF) announced Thursday. 

These enhanced requirements are for DASPs that wish to provide all four crypto-related services enumerated by the AMF: custody, buying or selling for legal tender, trading of digital assets, and the operation of a trading platform for digital assets.

The crypto arm of Societe Generale, SG-Forge, is the only firm that is licensed for all four services at the moment. Being licensed as opposed to being registered is the highest level of regulatory certification, SG-Forge told Blockworks in July when it was approved by the AMF.

DASPs that offer the four services will need to institute “adequate” security and internal control systems and systems to manage conflicts of interest. 

They’ll also have to release public pricing policies and have specific custody provisions, meaning they’ll promise to segregate client assets and company assets and not use client assets without expressed consent.

DASPs that obtained a simple registration before Jan. 1, 2024 are grandfathered in and will “continue to be subject to the framework applicable” before that date, the AMF said.

This new regime also has the added benefit of aligning the requirements for a French DASP license with the European authorization process for crypto-asset service providers (CASPs) under MiCA, which was approved in April 2023.

The new alignment would “allow a fast track procedure to be implemented towards CASP authorization,” the AMF noted.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

AERODROME TEMPLATE.png

Research

Aerodrome is a "MetaDEX" that combines elements of various DEX primitives such as Uniswap V2 and V3, Curve, Convex, and Votium. Since its launch on Base, it has become the largest protocol by TVL with more than $495B in value locked, doubling Uniswap's Base deployment.

article-image

The former Valkyrie CEO chats with Blockworks about what she has her eye on as Cypherpunk Holdings’ new leader

article-image

Thursday’s CPI report shows prices are coming down more quickly than analysts had anticipated, renewing hope that central bankers will cut rates in the fall

article-image

If we tokenize all assets in a speculative rush, the risk of creating illiquid markets and trapped value will manifest on a large scale

article-image

Plus, Trump is headed to the heart of Bitcoinlandia with a speaking appearance at the Bitcoin 2024 conference

article-image

Meanwhile, stocks rally after Jerome Powell finishes his Capitol Hill tour

article-image

Plus, Blinks have reshaped many people’s understanding of what blockchains are capable of