• Bank of France Governor Francois Villeroy de Galhau has suggested stricter regulatory standards for cryptocurrency firms.
• The Financial Markets Authority (AMF) requires registration of all cryptocurrency businesses offering custody and trading services.
• The Markets in the Crypto Assets bill (MiCA) have been the subject of great deliberations in the EU parliament since September 2020.

The world of cryptocurrency is growing rapidly, and with it comes the need for regulation. Bank of France Governor Francois Villeroy de Galhau recently made a plea for stricter regulatory standards for cryptocurrency firms within the country. This new call for regulation is in response to an amendment by Hervé Maurey, a member of the Senate Finance Commission, to remove a provision allowing businesses to operate without a license.

The Financial Markets Authority (AMF) already requires registration of all cryptocurrency businesses offering custody and trading services. So far, approximately 60 crypto entities have obtained AMF registration, but have yet to apply for the optional Digital Asset Service Providers (DASP) license. If accepted, the latest request by the central bank head would provide a regulatory framework for all DASPs in 2023.

The Markets in the Crypto Assets bill (MiCA) has been at the center of great deliberations in the European Union (EU) parliament since September 2020. This crypto framework is meant to provide a comprehensive set of rules for the digital asset sector in the EU. It is expected to be passed in 2024, but the current France law allows all unlicensed firms to operate until 2026, so it may have no effect on the current state of the industry.

The implications of this proposed regulation are far-reaching. It will provide greater security for both investors and businesses, as well as create a more level playing field in the industry. Additionally, it will help protect against fraud and money laundering. While the exact details of the MiCA bill still need to be determined, it is clear that the French government is taking a firm stance in regards to the regulation of cryptocurrency firms.

Parliamentary deliberations are expected to begin in January, and the outcome of this proposal could have a significant impact on the future of the cryptocurrency industry in Europe. As the industry continues to grow, it is important for governments to ensure that proper regulation is in place to protect consumers and businesses alike.