After a lawmaker proposed aligning the country’s laws with incoming EU regulation, France may ask crypto firms to obtain a full licence to operate in the country.
Hervé Maurey, a senator who serves on the finance commission, proposed an amendment on December 13th that would eliminate the grace period that France currently plans to extend to crypto platforms.
Currently, the rules permit crypto firms to operate in the country without a full licence until 2026. The new proposal, which was approved by the Senate this week and will be presented to the French parliament next year, would require firms to obtain a full licence from the financial regulator beginning in October of the following year.
This would bring it up to speed with the Markets in Crypto Assets (MiCA) regulation from the EU, which the European Parliament will likely vote on in 2023.
France’s current two-tier system mandates companies to register as crypto asset providers but then gives them the option to gain a full license, which requires higher levels of disclosure.
The recent bankruptcy of FTX has highlighted the risks inherent in any investment in crypto assets, especially when the company operates outside of any regulation.
(Reporting by Shikha Singh, Editing by Kapil Rajyaguru)
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