Bank of France governor calls for the country to establish crypto regulations ahead of the MiCA

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(Kitoko News) – Bank of France Governor François Villeroy de Galhau has urged countries to step up scrutiny of crypto companies operating independently in the country rather than wait for the implementation of EU-wide cryptocurrency market (MiCA) regulations. I asked. It provides a framework for how the region regulates the cryptocurrency sector.

Comment from Villeroy speech On Thursday, the central bank governor cited the current volatility and weakness in the cryptocurrency market as reasons for establishing clear regulation as soon as possible.

“The turmoil we are seeing in 2022 fosters one basic belief: France should switch to compulsory approval of DASPs (Digital Asset Service Providers) as soon as possible, rather than simply requiring registration. ‘ said Villeroy. “This needs to be done well before MiCA comes into force in order to create the necessary trust framework.”

In November, European Union lawmakers Postpone voting on the Markets in Crypto Assets Bill (MiCA) This means that the earliest it will come into force is February 2024.

MiCA’s provisions include requirements for cryptocurrency companies such as wallet providers and exchanges to seek approval from national regulators, a process France hopes to initiate on its own. It is now optional to license her DASP in France. Villeroy wants to make this mandatory for cryptocurrency companies willing to do business in France.

Currently, the majority of cryptocurrency service providers operating in France do not hold a DASP license. Most opt ​​instead to use the simplified registration process provided by the national financial regulator Autorité des Marchés Financiers (AMF).

The collapse of cryptocurrency exchange FTX in November prompted policymakers around the world to call for swift establishment of regulations on cryptocurrency companies to protect the public. Many argue that had the MiCA already entered into force, it could have mitigated the impact of the FTX collapse on Europeans.

inside conversation Hervé Maurey, a French Senator and member of the Financial Services Commission, told the Financial Times (FT) that the collapse of FTX was “an explosion.” [that] Contributed to the moment of calculation and consciousness. This has led many players within the French system to think that things need to be monitored more closely. “

In December, Morley proposed an amendment to the law that would eliminate a provision that would allow registered cryptocurrency companies to operate in the country without a full regulatory license until 2026. The proposal would require companies to obtain a license from the AMF from October 2023.

According to Maurey, the DASP license will help provide consumers with a higher level of protection and require crypto companies to disclose more information about their financial health and management systems.

Morley’s amendment was eventually adopted by the Senate and will be considered by the French parliament in January.

Disclaimer: The views expressed in this article are those of the author and may not reflect the views of the author Kikko Metals Co., Ltd. The author has made every effort to ensure the accuracy of the information provided. However, neither Kitco Metals Inc. nor the authors can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation of an exchange of commodities, securities or other financial instruments. Kitco Metals Inc. and the authors of this article accept no liability for loss and/or damage resulting from the use of this publication.

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