France is set to impose stricter registration rules on cryptocurrency companies from January 2024, according to a proposal approved by the National Assembly.
The new rules will require additional measures on internal controls, cybersecurity and conflicts of interest, with the aim of reinforcing France's crypto regulatory regime. Coindesk informed.
The move comes amid recent market turbulence and as the country prepares for the implementation of new European Union cryptocurrency laws.
France is positioning itself as a crypto hub and has already attracted companies like Binance and bit stampthat have been successfully registered with the country's Financial Markets Authority (AMF).
Registration involves anti-money laundering and governance compliance checks and is mandatory for all companies offering trading or custody services in France.
No company has yet obtained a license, which is a stricter process than registration and implies compliance with financial regulations.
Senator Hervรฉ Maurey initially proposed strengthening France's crypto regulatory framework in December, citing the collapse of cryptocurrency exchange FTX and the need to avoid loopholes before the EU Regulation of Markets in Cryptoactives (MiCA) goes into effect.
The industry expressed concern about the proposal, but regulators supported the move.
Eventually, a compromise was reached and both houses of the French parliament agreed to a proposal that imposes additional registration requirements from January 2024, but does not require companies to obtain a license. The Senate voted in favor of this proposal on February 16.
Maurey stated: "We are not here to prevent these activities from taking place, but rather to prevent them from being used for money laundering, tax evasion or terrorist financing."
The strengthened regulatory framework is expected to attract more crypto companies to France while ensuring that the industry operates in a safer and more regulated environment.
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This article was originally posted on Benzinga and appears here with permission.
