The Autorité des marchés financiers (AMF) recently announced new provisions for companies operating in the crypto-currency sector wishing to register as a digital asset service provider (DASP). The new measures, which will come into force from 1 January 2024, are designed to bring France into line with the European Markets in Crypto-Assets (MiCA) regulation.
New requirements for companies in the cryptocurrency sector
According to the AMF, companies wishing to register as a PSAN must meet a number of criteria, including :
- Have an adequate security and internal control system
- Set up a system to manage conflicts of interest
- Provide clear, accurate and not misleading information
- Adopting public pricing policies
- Comply with the specific provisions for each type of service offered
These conditions are in addition to the already draconian requirements imposed by the current regime. For example, to date, only Société Générale's FORGE subsidiary has managed to obtain PSAN authorisation from the AMF.
MiCA regulation: a step forward for the regulation of crypto-currencies in Europe
The MiCA regulation is the first European bill to clearly define the regulatory limits of the decentralised digital economy. It demonstrates the European Union's determination to provide a stricter framework for the crypto-currency sector, while ensuring investor protection and financial stability.
By complying with the MiCA regulation, France is taking part in a move to harmonise national legislation at European level. This compliance implies major changes for companies in the crypto-currency sector, which will have to adapt to the new requirements imposed by the AMF.
Potential challenges for businesses and future prospects
The new provisions announced by the AMF may represent a challenge for companies in the crypto-currency sector, which will have to meet increasingly stringent criteria to obtain PSAN registration or retain their current status.
However, it is important to stress that these measures are also intended to strengthen investor and user confidence in the digital asset market. Indeed, a solid and harmonised regulatory framework at European level can foster the development and growth of the crypto-currency sector.
Impact on existing players and new entrants
Companies that are already registered as PSANs will have to update their internal procedures and comply with the new requirements imposed by the AMF. This could entail additional costs and organisational adjustments for these players. In addition, new entrants will have to take these changes into account in their strategy for entering the French market.
France's compliance with the European MiCA regulation demonstrates the regulatory authorities' determination to strengthen the supervision of the crypto-currency sector. The companies concerned will have to adapt to these new requirements if they are to continue to operate on the French market.
Despite the challenges posed by this regulatory change, it can also be an asset for the development of the crypto-currency sector in Europe, promoting investor confidence and ensuring better protection for users.
