Following the fall of FTX, a French Senator recommended strengthening crypto rules. The decision comes as the European Union’s Markets in Crypto Assets (MiCA) initiative nears completion. The Financial Times reported on Thursday that France is under increasing pressure to plug loopholes in its crypto rules.
MiCA Implementation is Near
Currently, France provides a window with less governmental oversight to attract cryptocurrency startups. Senator Hervé Maurey of the Finance Commission is apparently planning to modify the rule. This includes prohibiting registered crypto enterprises from doing domestic business without a complete regulatory license until 2026.
The research publication coincides with the European Union’s preparations for fully implementing the Markets in Crypto-Assets (MiCA) law in 2024. Digital Asset Service Providers (DASPs) in France must register and comply with AML/CFT regulations. However, the registration does not seem to need a license.
According to the research, France has 50 registered firms, all of which are functioning without a license. Regarding “business-friendliness,” France is a top-20 crypto economy. In particular, in October, SG Forge, one of the oldest banks in France, was permitted to provide crypto services by the country’s financial regulators. Binance was also able to gain registration in France this year.