France to Tighten Crypto Companies Registration Rules Next January
France intends to tighten registration rules for cryptocurrency companies. This is stated in the amendments to the financial legislation.
The document was supported by a committee of both houses of parliament. According to the changes, applicants must comply with the rules of internal control, cybersecurity and have a system of management of conflicts of interest.
On January 24, the French National Assembly was to vote on the compulsory licensing of companies related to digital assets. The alternative was to replace this option with a general registration process with additional consumer protection and corporate control measures, which eventually became the main one.
The document must be approved by the Senate on February 16 and the National Assembly on February 28. If supported, the rules will take effect in January 2024.
Currently, cryptocurrencies prefer to register with the Financial Markets Authority (AMF) instead of obtaining a license. There are currently 60 companies on this list.
To obtain a full license from AMF, applicants need to provide liability insurance or minimum capital, establish internal controls and follow cybersecurity protocols along with other organizational requirements. So far, none of the companies has been able to meet these criteria.