‘Fast Track’ Crypto Registration Mulled By French Watchdog After MiCA Vote

Summary:

• The French Financial Markets Authority could fast-track crypto registration for companies like Binance that already run regulated digital asset businesses in France.
• Regulators in France are considering the sped-up regime as the EU’s landmark MiCA bill was overwhelmingly backed by legislators, beckoning a new crypto regulatory era across European states.
• The French AMF also noted that lawmakers would continue to assess rules for DeFi and NFTs as these two ecosystems do not fall under MiCA’s purview.

Regulators from the French Financial Markets Authority (AMF) are moving to fast-track crypto registration for approved digital asset businesses in the country. The AMF’s decision comes after lawmakers from the European Union voted in favor of the Markets in Crypto Assets Bill or MiCA which will dwarf existing crypto regulations across EU states like France.

MiCA’s bloc-wide rules require crypto businesses and wallet providers to register for a license under strict regulations. Stablecoin operators must also hold sufficient reserves for the coins they issue. The bill garnered massive support from lawmakers, winning votes 13-1 during a parliamentary session on Thursday. MiCA takes effect from 2023, 12-18 months after the bill is passed and Published in the bloc’s Official journal.

The AMF said there’s “consideration of a possible fast-track modular licensing” for crypto businesses like Binance that already received approval from France’s financial watchdog. For companies like this, MiCA allows an extra registration period of 18 months for businesses to align their operations with stricter customers and financial protection policies.

“These players can, during this period, continue to offer their services solely to the French public”, said the AMF.

French Regulator Hints DeFi Rules After FTX Crash And MiCA Vote

The French AMF suggested that rules for decentralized finance and non-fungible tokens as MiCA purview does not cover these two crypto vertices. France already tightened local crypto regulations after FTX, the crypto exchange founded by the disgraced Sam Bankman-Fried, left millions of users in limbo after crashing last year.

During its latest announcement, the AMF said EU lawmakers would continue to assess rules for DeFi and NFTs if necessary.