France’s AMF President Announces Support For Mandatory Crypto Licensing
According to reports, the President of AMF, Marie-Anne Barbat-Layani, wants compulsory licensing laws for blockchain companies implemented in France before equivalent regulations are implemented later across Europe. Barbat-Layani further supported the rules by saying: “The mandatory license is influenced by the usual processes carried out in the TradFi sector, and, like the way it occurs, it provides a few more substantial and in-depth components for investor’s protection.”
Protecting Crypto Investors
Furthermore, she referred to the new regulation as the ‘surest guarantee’ to protect cryptocurrency investors. Additionally, she stated that AMF will continue to be open-ended to innovations in the financial sector and that the events of late will not impede this goal while noting that the failure of FTX “should not be the end of digital finance.”
Currently, crypto companies based in France are not required to get a full AMF license. They could instead acquire a lightweight registration through the regulator. Reportedly, every French crypto firm — along with Binance, which began operations in France in 2021 — has also opted for a simplified enrollment process.
Barbat-Layani isn’t the only official in France who supports the abolition of the slimmer system. Francois Villeroy de Galhau, governor of the BoF (Bank of France), proposed that France enforce compulsory licensing as soon as possible.
Leading up to that, Senator Hervé Maurey suggested a change to the French law, eliminating the choice of light enrollment in the best interest of stricter licensing. Speaking with Bloomberg, Maurey said full licensing might become a must by October this year, depending on the result of a proposal being debated by lawmakers in the country this month.
Bank of France’s Governor Proposes A Compulsory Licensing For Crypto Companies
A few days back, the governor of France’s central bank suggested launching licensing policies for crypto service providers. As stated by the governor, the need for tighter effective regulation arises from the crises of the market over the last year.
Governor Galhau believes licensing should substitute enrollment for blockchain firms operating in France. De Galhau also advocated for tighter regulatory standards for cryptocurrency businesses. In light of the recent crypto market fluctuations, Galhau insisted on licensing rather than registration.
Governor Galhau also believes that Paris must take action before the impending EU regulations. Additionally, he said the country should make it a must for DASPs (Digital Asset Service Providers) to acquire permits from France’s government.
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