The European Union’s new regulatory framework, Markets in Crypto Assets (MiCA), has drawn significant inspiration from France’s existing regulations. This revelation comes from Jerome de Tyche, the President of the non-profit organization Ethereum France. He highlights that the framework is similar to the French model called PSAN (Prestataire de service sur actifs numériques, or Digital Asset Service Provider – DASP). Companies register as PSAN, and then work through the accreditation process.
The MiCA framework, which seeks to standardize crypto regulations across the European bloc, has received a warm welcome from both industry stakeholders and regulators. Moreover, SEC Commissioner Hester Peirce suggests that MiCA could serve as a model for the United States’ approach to regulating the sector.
In France, obtaining a DASP license is mandatory for companies involved in digital asset custody, buying, selling or trading digital assets. With the adoption of such licenses, prominent crypto exchanges like Binance and Crypto.com have already taken this route. Meanwhile, Coinbase, the largest crypto exchange in the U.S., has also expressed plans to do so.
Tyche acknowledges that the French approach has paved the way for EU regulations. As the EU often draws upon what is emerging in various countries for inspiration, many believe France’s leadership may help drive innovation in the space. However, Tyche also acknowledges that the broader European crypto regulation is still in its early stages, and it’s too soon to determine its overall effectiveness.
Notably, Tyche highlights the French government’s intention to establish a new regulatory framework for Exchangeable In-Game Items, which he believes could benefit companies such as Sorare. He is quite intrigued by the forthcoming regulation of web3-based games.
As of now, not a single French firm has chosen the more stringent form of authorization. In response, French lawmakers have considered making full licenses mandatory for all businesses to prepare them for the upcoming MiCA legislation. Nevertheless, this has faced opposition, as some argue that insufficient time for compliance could burden companies and tarnish France’s reputation as a crypto hub. Eventually, a compromise was reached in January, allowing companies that are already registered under the simpler authorization system to continue with minimal changes until MiCA’s anticipated implementation in January 2025.
Regulators in France also consider introducing a “fast-track” system for registered crypto firms seeking approval under the new EU-wide rules. The MiCA regulation’s eventual introduction will likely bring a significant impact to the crypto industry, including France, sparking further discussion within the sector.
Lastly, Tyche notes that EthCC, which has been based in Paris for the past six years, is considering other locations for its conference due to the 2024 Olympics in Paris. One potential host city is Brussels, which Tyche believes will keep the event “French” while bringing it closer to European regulators.
Source: Decrypt
