- France announces more stringent regulations for crypto companies.
- Existing firms can continue operating, but new entrants face tougher demands.
- MiCA could disrupt France’s position as Europe’s crypto hub, expected in 2026.
The National Assembly of France has given its approval to more stringent regulations for crypto companies, which only require the endorsement of President Emmanuel Macron to become law.
The lawmakers voted 109 to 71 in favor of adopting a group of European Union laws, which involve a provision that mandates stricter demands for new entrants seeking to participate in the French crypto market.
None of the companies registered in France have chosen to pursue a higher level of licensing. As per the existing system, firms can apply for straightforward registration with the local financial regulator, L’Autorité des marchés financiers (AMF), to begin operations, but they can also opt for full licensing, which necessitates more transparency.
However, the 60 companies that have preferred the simpler registration process under France’s existing two-tier system will not be affected by the stricter regulations and will have until the EU-wide laws come into force.
French Senator Hervé Maurey had originally proposed that all crypto companies operating in France, including those already registered, be subjected to higher standards. However, this idea was met with resistance from the industry and other lawmakers.
As a result, a compromise was reached, which eliminates the possibility of simple registration for new market entrants, while allowing existing companies to continue operating until the EU’s significant crypto regulations are introduced.
It is expected that the Markets in Crypto Assets (MiCA) regulations of the European bloc will be approved in April this year, although they are unlikely to be enforced until 2026. France has been successful in attracting major crypto companies such as Binance and Crypto.com to establish their presence in the country, positioning itself as Europe’s crypto hub.
However, the implementation of MiCA, which will harmonize regulations for cryptocurrencies throughout the bloc, could potentially disrupt France’s ambitious plans in the industry.
