French Authority for Financial Markets Authorité des marchés financiers (AMF) is the latest entity in the country calling for regulation of cryptocurrency operators.
Notably, the MFA is pushing for a compulsory and faster licensing of cryptocurrency entities that are not registered to offer services in the country, agency president Marie-Anne Barbat Layani She said on January 6th.
Layani’s request comes after the French senate’s proposal to ask digital asset players to seek re-registration ahead of the introduction of new European Union laws on cryptocurrency markets (MiCA).
“The MFA, like the parliament, is calling for an acceleration of the transition to the compulsory licensing regime for unregistered service providers,” Layani said.
Emulate traditional finance
Indeed, the official pointed out that FinTech players in the country also need to emulate the traditional financial sector by securing the support of the regulator.
“Like traditional finance, FinTech in Paris must choose rigor and the protection of savers. You can count on the MFA to support you along this path,” she said added.
It is worth noting that French lawmakers had proposed to enact new laws forcing cryptocurrency companies to obtain new operating mandates by October 1, 2023, when the MiCa laws are expected to take effect.
Currently, France is home to several major cryptocurrency-related businesses, such as the Binance trading platform. Part of the registration for cryptocurrency traders includes reviewing the governance of specific companies and compliance with anti-money laundering laws.
The central bank’s push for tougher laws
At the same time, the governor of the Bank of France, Francois Villeroy de Galhau, reiterated the importance of enacting stricter regulation on cryptocurrencies to protect investors after the recent collapse in digital asset markets.
According to Galhau, France should first enact its laws rather than move with the rest of Europe in a move that can establish a solid foundation and set an example for the rest of the world.
Despite the country’s uncertainty over cryptocurrency regulation, the central bank has already made inroads into the blockchain space. As Finbold reported, the French central bank, along with Nigeria, has joined the blockchain-focused Hyperledger Foundation.
In particular, banks under Hyperledger have used the platform’s open source technologies as part of their research programs and production solutions.
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