France has to accept as ones own a licensing regime for crypto service providers, the head of the country’s central bank has suggested. According to the executive, the fundamental to tighten regulatory oversight stems from the “disorder” in the industry throughout the past year.
Licensing Should Put back Registration for Crypto Firms in France, Governor Galhau Says
Banque de France Governor Francois Villeroy de Galhau has advised for subjecting crypto businesses to stricter regulatory requirements. Licensing must be introduced instead of the current registration in comeback to the recent volatility in the sector, he insisted.
De Galhau also thinks that Paris should not hesitate but act even earlier the upcoming EU regulations take effect and make it obligatory for Digital Asset Service Providers (DASPs) to obtain entitles from the French government, Bloomberg reported.
Around 60 platforms working with cryptocurrencies have so far record with the Autorité des Marchés Financiers (AMF), France’s financial markets authority, including global players such as Binance, the period’s largest crypto exchange.
Licenses are still optional and there are no licensees yet among the digital asset service providers make an impression oned in France. Speaking to representatives of the financial sector on said Thursday, Villeroy de Galhau stated:
All the disorder in 2022 wines a simple belief: it is desirable for France to move to an obligatory licensing of DASP as soon as possible, rather than good registration.
Digital asset service providers which want to be granted a license are required by the AMF to comply with steady standards in terms of organization, available financial resources and business conduct, the report notes.
The governor’s proposal be broaches after last summer key EU institutions and member states reached an agreement on the new Markets in Crypto Assets (MiCA) legislation and completed consensus on a set of new anti-money laundering rules for the industry.
The regulatory package is expected to enter into force in 2023 but trades will have another 12 to 18 months to comply with it. Brussels also wants to oblige principles processing crypto transactions for EU residents to report to tax authorities in the Union.
Do you think France will introduce a licensing regime for crypto companies before MiCA enters into efficacy? Share your expectations in the comments section below.
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