MiCA was recently approved by the European Parliament and is awaiting approval from the European Council in July to be officially adopted as regulation.
Over the next 18 months, the AMF will guide French providers of digital asset services through the switch to MiCA regulation. To prepare for the regulations, the AMF is examining aspects such as fund provision regulations, conflict of interest policies, and the alignment of requested documents.
Crypto firms in France have two licensing options: a relaxed "simple" option and a more stringent option that is closely aligned with MiCA regulations. The stricter licensing option has more rigorous measures in place to ensure compliance with anti-money laundering regulations, secure custody of customer assets, report to regulatory bodies, and provide comprehensive risk and conflict of interest disclosures.
All 60 of the AMF-registered crypto firms in France are currently regulated under the relaxed option and will remain so until they transition to MiCA regulation. The AMF has stated that any crypto firm registering after January 2024 will have to do so under the more stringent option.
It is important to note that any company regulated under either option will only be able to offer services in France until they transition to MiCA. Once approved under MiCA, firms will be able to benefit from the European passport and offer services in all EU countries.
The MiCA regulation, which is tentatively slated to come into effect from the start of 2025, aims to establish a clear and consistent regulatory framework for crypto assets in the EU. The regulation will provide greater clarity and transparency for investors, as well as improve consumer protection in the rapidly evolving world of cryptocurrency.
