The French regulator, the Autorité des Marchés Financiers (AMF) has outlined plans to realign the country's crypto regulations with the European MiCA directive.
Scheduled to be fully operational by January 1, 2024, these modifications signal a clear move towards more rigorous registration procedures for digital asset service providers (DASPs).
Changes within the AMF's General Regulation include renewed attention to handling potential conflicts of interest, expanding mandatory disclosures, and enforcing a strict separation of client and platform assets. This involves:
"Prohibiting the utilization of client assets without their explicit prior consent, having a signed agreement with clients, ensuring a resilient and secure IT system, and refraining from using client assets without their express consent."
For DASPs considering registration after this 2024 milestone, adapting to these updated guidelines becomes paramount.
However, those already registered before 2024 will be governed by a "grandfather clause," enabling them to continue adhering to the previous regulatory framework.
What is the MiCA Directive?
Adopted on April 20, 2023 by the European Parliament, the MiCA directive, or the Markets in Crypto-Assets Regulation, is a significant European regulatory framework designed to oversee the rapidly evolving crypto space.
It aims to establish a unified set of rules for digital assets and related services within the European Union.
In the context of this article, France is adjusting its own crypto regulations to align with the MiCA directive.
The MiCA directive will be implemented gradually between 2024 and 2025.
Alex
