France Tightens Crypto Registration Rules Ahead of EU Policy Rollout

• The French National Assembly has passed new regulations that require cryptocurrency firms to register with the country’s financial regulator.
• The new regulations represent an important milestone in the development of the crypto industry in France.

France Passes Stricter Crypto Regulations

The French National Assembly has voted in favor of stricter registration rules for cryptocurrency firms operating in the country. This move comes as part of the French government’s efforts to regulate the crypto industry and prevent money laundering and terrorist financing.

The new rules require cryptocurrency firms to register with the French financial markets regulator, the Autorité des Marchés Financiers (AMF). The registration process will include a background check on the company’s directors and shareholders, as well as an assessment of the company’s financial situation and its ability to meet its obligations to its customers. Additionally, the regulations require cryptocurrency firms to have their headquarters in France or another European Union member state.

The French government has been working on these regulations for several months, in response to concerns about the use of cryptocurrencies for criminal activities. The country’s financial regulator, the Autorité de Contrôle Prudentiel et de Résolution (ACPR), has identified several cases of money laundering and terrorist financing involving cryptocurrencies.

The new regulations are also part of a broader effort by the French government to promote innovation and investment in the digital economy. France has been positioning itself as a hub for innovation and entrepreneurship, particularly in the fields of fintech and blockchain technology.

In addition to the new registration rules, the government has established a national blockchain strategy and launched a digital euro pilot project.

The new registration rules have been welcomed by many in the crypto industry, who see them as a step towards greater legitimacy and acceptance. However, some have criticized the rules as overly restrictive, arguing that they could stifle innovation and make it more difficult for smaller companies to enter the market.

Impact of the New Rules

Overall, the new regulations represent an important milestone in the development of the crypto industry in France. By providing greater clarity and transparency, they will help to build trust and confidence in cryptocurrencies as a legitimate and secure form of investment and payment. At the same time, they will help to ensure that the industry operates within a well-defined regulatory framework, with clear rules and responsibilities for all players involved.

What’s Next?

The new regulations are now awaiting approval from French President Emmanuel Macron. If he approves them, they will come into force in the coming months. Once they are in force, cryptocurrency firms will have a period of time to comply with the new rules.

The new regulations are a significant step forward for the regulation of the crypto industry in France. They will help to bring the industry into line with other financial services sectors, and they will provide greater protection for consumers. However, it remains to be seen how the new rules will impact innovation in the industry.