French National Assembly To Vote On Mandatory Crypto Firm Licensing

On January 24, the French National Assembly will vote on compulsory licensing of digital asset-related companies.

If approved, the new regime will become relevant in October, before the common EU-level rules under the Integrated Market Regulation for Crypto Assets (MiCA). The latter will take effect at the end of 2024.

The National Assembly will also consider proposals to move the licensing deadline to January 2024 and replace compulsory licensing with its simpler version - a general registration process with additional consumer protection and corporate controls.

Currently, cryptocurrency companies prefer to register with AMF instead of obtaining a license. There are now 60 firms on the 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 have been able to meet these criteria.

Regardless of whether or not lawmakers pass an amendment, already registered companies will be able to continue operating until the end of the transition period (presumably until early 2026).