France is set to implement amendments to its cryptocurrency regulations in 2024 in order to align its national laws with the pan-European standards established by the Market in Cryptoassets (MiCA) framework. The country's primary financial regulatory authority, the Authority for Financial Markets (AMF ), has revealed the details of its general regulations and policies for digital asset service providers (DASPs), highlighting the need for "enhanced" registration. The announcement was made on August 10.
The AMF's newly introduced Article 721-1-2 outlines the "enhanced" registration requirements that cryptocurrency platforms will need to adhere to. These requirements encompass various aspects, including the implementation of conflict-of-interest management systems, additional obligations for disclosure, segregation of client and platform assets, and a prohibition on utilizing Client Assets Subject to Consent.
Effective from January 1, 2024, these amendments will be compulsory, and entities applying for enhanced DASP registration will need to incorporate them. However, DASPs that secure registration before this date will be subject to the "grandfather clause," meaning they will operate under The previous, less complex version of the regulatory framework.
The MiCA framework, considered the first comprehensive cryptocurrency legislation, was endorsed by the European Parliament in April 2023. It is anticipated to be implemented in stages over 2024 and 2025. The development of this legislation spanned several years, causing some apprehension within the crypto community . Among its provisions is the imposition of a daily transaction limit of €200 million (approximately $219 million) for private stablecoins like Tether.
