The governor impressed upon compulsory licensing before the laws on crypto came into force in the EU.
The Governor of the Bank of France has proposed stricter licensing for companies operating in the crypto space in France. Indicating the current stress in the crypto markets, Francois Villeroy de Galhau expressed that France should take some initiative even before the EU laws on crypto are enacted and put in force compulsory licensing requirements for local digital asset service providers (DASPs). He was referring to the European Parliament’s Markets in Crypto Assets bill (MiCA), which is expected to be in force only in 2024.
“All the disorder in 2022 feeds a simple belief: it is desirable for France to move to an obligatory licensing of DASP as soon as possible, rather than just registration,” said Villeroy de Galhau in a speech addressed to the financial industry of France. Currently, the Financial Markets Authority (AMF) is the main regulating authority for crypto companies in France. Those who are registered with the DASP license are required to follow a list of measures and regulations in finance, business organization, and conduct. None of the crypto firms in France hold the license, though.
French laws allow unlicensed crypto companies to operate till 2026. Hervé Maurey, a Senate finance commission member, had proposed an amendment in December to remove the particular clause which allowed the companies to function without a license. The final vote for MiCA had been scheduled for February 2023.