France's financial regulator, the Autorité des marchés Financiers (AMF), announced on Thursday significant amendments to its general regulation and policy concerning digital asset service providers (DASPs).
These changes, set to be implemented on January 1, 2024, are designed to integrate the "enhanced" registration provisions introduced by the DDADUE Law.
Furthermore, the modifications aim to anticipate the transition to the European Regulation on markets in crypto-assets (MiCA) by adjusting the provisions related to licensed DASPs.
EU nations are gearing up to adopt the newly established Markets in Crypto Assets (MiCA) regulations, aimed at digital assets and businesses targeting the unified market.
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These regulations are expected to be in place within the next year to a year and a half. France, with its existing detailed licensing system for cryptocurrency firms, is making adjustments to align with MiCA.
Concurrently, the country is actively encouraging companies to register within its borders.
The primary objectives of the AMF's changes are twofold. Firstly, they seek to embed into the general regulation and its policy the provisions applicable to DASPs that are subject to "enhanced" registration.
This regime will become mandatory from Jan. 1, 2024, for new entities wishing to provide the four services that mandate registration. Secondly, the amendments intend to synchronize the requirements for DASP licenses with those for European authorization for crypto-asset service providers (CASPs) under the MiCA Regulation.
This alignment will also pave the way for a streamlined procedure toward CASP authorization.
A notable introduction in the AMF general regulation is the "enhanced" DASP registration, which emphasizes various areas now covered by this enhanced registration.
These areas include adequate security and internal control systems, conflict of interest management systems, clear and non-misleading information, public pricing policies, specific custody provisions, and a resilient and secure IT system.
DASPs that secured a simple registration before Jan. 1, will benefit from a "grandfather" clause, allowing them to remain under the framework applicable before this date.
The AMF has also updated its instructions on the preparation of a registration and license file and the cybersecurity system of requirements.
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