French Crypto Industry in Limbo as National Assembly Debates Licensing Rules
• French legislators are discussing crypto licensing rules in the coming weeks as a result of a Senate proposal to anticipate EU rules.
• The proposed licensing would require crypto companies to seek mandatory licenses from the Financial Markets Authority (AMF).
• Crypto advocates are pinning their hopes on the National Assembly to overturn the legal change which could disrupt France’s goal of becoming an innovative crypto hub.
The French crypto industry is in a state of limbo as legislators in the country’s National Assembly prepare to debate a new set of licensing rules that could potentially have a significant impact on the sector.
The proposed regulation, which was agreed by the French Senate in December, would require crypto companies to seek mandatory licenses from the Financial Markets Authority (AMF). The new rule is intended to prevent another FTX-style collapse and protect investors, but it has caused consternation amongst crypto advocates who are worried it could disrupt France’s goal of becoming an innovative crypto hub.
The proposed licensing would involve checks on financial resources and business conduct, which means that any crypto company that isn’t registered with the AMF by October 1, 2023, would need to seek a license. This has been viewed by some as a potentially burdensome process which could have a negative effect on the industry.
The National Assembly is now preparing to debate the issue in the coming weeks, and crypto advocates are pinning their hopes on them to overturn the legal change. There is also the possibility that the licensing rules could be watered down, although it is unclear at this stage what the outcome will be.
The debate in the National Assembly will be crucial for the future of the French crypto industry, and it is likely to be closely watched by other countries in the EU who are also considering introducing similar licensing rules. The outcome of the debate could have a significant impact on the global crypto industry, and will be keenly anticipated by those who are hoping for a favorable outcome.