France’s financial controller, Autorité des Marchés Financiers (AMF), is tweaking its digital asset regulatory structure to sync with the forthcoming Market in Crypto Asset (MiCA) regulation. Scheduled to effect from Jan 1, 2024, these amendments target not just the General Regulation but also a renewed registration framework for Digital Asset Service Providers (DASPs).
The updates enhance the DASP registration process as clarified in the AMF General Regulation Article 721-1-2, with crucial stipulations requiring timely disclosure of any novel developments to the financial regulator. Amid the turbulent aftermath of FTX’s unfortunate collapse and the ongoing litigation against its ex-CEO Sam Bankman-Fried and Alameda Research, the new rules take a firm stand against the mishandling of user assets.
This regulatory move is not just tightening the leash on corporations but is also planning mechanisms to manage lurking conflicts of interest between firms and customers. Existing DASPs that have obtained licences remain somewhat unscathed, bound to a slightly adjusted version of the law, thanks to the “grandfather” clause. However, potential new registrants will come under the regime’s full force.
The revision aligns with MiCA – a remarkable regulation making waves in several web3 areas, including stablecoins, crypto assets, trading, and exchanges. MiCA’s phased implementation estimated between 2024 and 2025 has been commended for being an all-encompassing regulation that portrays a unified conceptual classification of virtual assets. Its success has sparked adaptations in local laws across the EU and prompted crypto companies to ensure total compliance before MiCA commencement.
On a global level, the universal span of digital assets has initiated discussions for a parallel framework in other jurisdictions. In countries like the United States, the apparent deficiency of regulatory clarity is causing a stir. Industry chiefs and critics are rallying for lawmakers to consider the EU approach, raising concerns that they could risk an exodus of talent from the country.
While France’s regulation amendments show a relentless effort to ensure investor protection, it remains to be seen if the freedom and innovation within the crypto realm can coexist with stringent regulations. Also, one cannot overlook the fact that this increased oversight could potentially discourage DASPs from setting up shop in the country, thereby hampering the growth of the digital assets market.
Source: Cryptonews
