France's financial regulator is weighing up “ fast track ” options for enrolled firms so they can be compliant with MiCA regulations as soon as possible.
A “ fast track ” option for licensed crypto enterprises in France to get regulated under the upcoming Markets in Crypto-Assets (MiCA) acts has been mulled by the country’s financial regulator.
In a statement issued on April 21, the French Financial Markets Authority (AMF) welcomed the approval of MiCA and outlined how French rule will proceed during the transitory period over the coming 18 months.
A crucial focus for the AMF will be guiding the switch over to the MiCA rule for French providers of digital asset services (PSANs).
The AMF stated that it's presently importing “ fast track ” options for these enterprises so that they can be compliant with MiCA rules as soon as possible.
In terms of MiCA compliance, the AMF is looking to plug the gap relating to aspects similar to fund provision regulations of crypto enterprises, conflict of interest programs, and the alignment of requested documents needed under AMF and MiCA regulation.
To the universal pleasure of the crypto industry, the European Parliament voted in favor of passing the MiCA regulatory pack on April 20.
Moving forward, MiCA currently needs approval from the European Council in July to be officially adopted as a rule.
The rule is tentatively slated to come into effect from the start of 2025 and aims to establish a clear and consistent regulatory framework for crypto assets among the European Union (EU) member states.
In France, crypto enterprises have two licensing options; a “ simple ” option offering relaxed needs, and a more stringent “ enhanced ” option, which is favored by the government and is reported to be nearly aligned with MiCA regulations already.
The stricter option has greater controls surrounding anti-money laundering rules, customer asset custody, reporting to regulators, and providing detailed threat and conflict of interest disclosures as a means to strengthen consumer protection.
Related: What’s next for EU’s crypto industry as European Parliament passes MiCA?
All 60 of the AMF-registered crypto enterprises in France are regulated under the comfortable option and will stay that way until they're ported over to MiCA regulation.
The AMF has preliminarily stated that any crypto enterprise that registers after January 2024 will have to do accordingly under the more stringent option.
Especially, the AMF similarly outlined that any company regulated under either category will only be able to give its services in France until they're ported over to MiCA.
“ These actors will be able, during this period, to remain to give their services to the French public only, ” the statement reads, adding that “ service providers who are approved under the MiCA regulation will be able to profit from the European passport and provide their services in all EU countries. ”
(BRIAN QUARMBY, Cointelegraph, 2023)