The French regulator AMF is exploring a fast-track mechanism for registered crypto firms to comply with the new EU-wide MiCA regulations.
L’Autorité des marchés financiers (AMF), France’s financial regulatory authority, has expressed its intention to devise a fast-track mechanism for registered cryptocurrency firms to adhere to the new EU-wide regulations. The AMF’s objective is to streamline the transition process for crypto businesses as they adapt to the Markets in Crypto Assets (MiCA) legislation. By unifying the regulatory framework across Europe, the authority anticipates an increase in competitiveness for French and European crypto companies, as well as improved investor protection.
MiCA’s Impact on European Crypto Landscape
At present, France enforces a dual-level crypto regulation structure. All companies must undergo basic registration, but they may also opt for a higher level of authorization, which demands further disclosure. The MiCA legislation is akin to the advanced authorization level available to French firms. To simplify the shift from national regulations to EU-wide directives, the AMF is exploring the viability of an expedited pathway for registered providers.
In addition, the AMF actively contributes to the evolution of MiCA and crypto regulation at the European level. As the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) collaborate on crafting comprehensive texts delineating the application of MiCA, the French regulator commits to adjusting its overarching regulations accordingly.
Addressing the State of Crypto Regulation in France
Although both basic and advanced authorization levels are accessible in France, none of the roughly 60 registered companies in the country have opted for the more rigorous option. This situation prompted French legislators to consider requiring all firms to apply for a full license earlier this year, with the expectation that this would better equip them for MiCA’s arrival.
Opponents of this proposal contended that the adjustment would not grant companies ample time to adapt and that it would impose an unjust burden on them while tarnishing France’s status as a crypto-friendly hub. A compromise emerged in January, permitting firms registered under the basic system to maintain their operations until MiCA’s anticipated introduction in January 2025. However, new market entrants must secure a full license if they intend to launch in 2024 or later.
The European Parliament voted for MiCA to be implemented.
This means one of the world’s largest markets is introducing tailored regulations for crypto to protect users and support innovation.
The fine details will matter, but overall we think this is a pragmatic solution to…
— CZ 🔶 Binance (@cz_binance) April 20, 2023
Implications for Crypto Firms
The AMF’s contemplation of a fast-track mechanism for registered crypto firms to adhere to MiCA underscores the regulator’s dedication to nurturing a dynamic and competitive crypto environment in France and Europe. By harmonizing regulations throughout Europe, the MiCA legislation aims to bolster investor protection while fostering innovation and expansion within the crypto industry.
It is essential for crypto businesses to stay informed about regulatory shifts and adjust their strategies as needed. The AMF’s forward-thinking approach to easing the transition to MiCA exemplifies the significance of a supportive regulatory atmosphere in propelling the growth of the crypto sector.