Bank of France Governor François Villeroy de Galhau wants to strengthen the country’s grip on crypto firms this year ahead of EU-wide regulation set to take effect in 2024.
Villeroy made the following statement during a speech on Thursday:
“The disruption seen in 2022 is nourishing one basic conviction: France should switch as soon as possible to the compulsory authorization of DASPs (digital asset service providers) rather than simply requiring their registration,”
The French financial regulator, Autorité des marchés financiers (AMF), now offers registration and optional licensing to crypto firms wanting to lawfully deliver services. The coming year may see the implementation of mandatory licensing requirements for crypto asset service providers.
The crypto giant Binance, as well as Société Générale, one of France’s largest banks, were granted the French license earlier this year.
Regulators from around the world have become concerned as a result of a string of crypto sector collapses and market declines over the past year.
Policymakers encouraged hastened adoption of the EU-wide Markets in Crypto-Assets (MiCA) regulation following the most recent collapse of crypto exchange titan FTX. The financial regulators who will be writing the implementation laws in the upcoming year retorted that they are already under time constraints.
The MiCA regulatory framework lays out detailed licensing requirements for cryptocurrency businesses. Many policy experts believe that had MiCA previously been in place, the impact of the FTX collapse on Europeans may have been lessened.
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