France views the new cryptocurrency registration rules as an enhanced version of its burdensome Senate-approved licensing requirements.
According to reportsthe French state is looking to strengthen its crypto registration rules next January.
The Special Legislative Committee agreed to the text of the Registration Regulations. The next step is to get Senate approval, a process scheduled for February 16th. Following Senate approval, the text will also need approval from the French National Assembly later this month.
France has articulated plans for registration conditions that cryptocurrency companies will comply with by January next year.This memo It was published on Friday by deputy committees of both houses of Congress. However, it should also be noted that the proposed registration conditions failed to raise the amount of expected interest by the French Senate.
Applying for New Firms to France’s Growing Crypto Space to Meet Additional Requirements Under New Registration Proposal
A new French registration proposal suggests that companies applying for cryptographic operations for the first time will have to meet additional rules. According to the Legislative Joint Committee text, these rules relate to internal controls, cybersecurity, and conflicts of interest. But even if the current situation seems to be thorough, it is still doing better than the previous awkward position taken by the French Senate. For this position, new applicants had to obtain a license. So far, no operator has been licensed. This suggests how cumbersome the process is. Currently, obtaining a cryptocurrency license in France requires a background check on financial resources and conduct of business.
Under French crypto regulations, companies could register with the Financial Markets Authority. This registration serves as an indication of adherence to basic money laundering and governance standards.
The President of Crypto Lobby Group ADAN Comments on the Development of French Crypto Legislation
According to ADAN Chairman Faustine Fleuret, tougher crypto regulation is a more realistic approach than the French Senate. However, she also warned that the inclusion of requirements for sophisticated and secure IT systems could pose some challenges. In Fleuret’s opinion, these obstacles can be difficult for smaller companies to address or for regulators to effectively direct.
Last year, Senator Hervé Murray proposed tightening France’s cryptocurrency rules in the wake of FTX’s sudden implosion in November. Murray pointed out at the time:
“The recent bankruptcy of FTX puts the spotlight on the risks inherent in all investments in crypto assets, especially if the company operates outside of regulation.”
In addition, the proposal was also intended to close loopholes that could arise from complying with new European Union regulations. Approved by the Consortium of the Council of Europe.
According to the European Union Council, European Commission and European Parliament, the bill calls for clear information on crypto projects. In addition to increasing the transparency of crypto activities, crypto issuers should publish a revealing “Crypto Asset White Paper”. Additionally, the bill also requires stablecoin companies to meet capital requirements.
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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to explain the cryptocurrency story down to the basics so that anyone can understand it without much background knowledge. Krypto When he’s not heavily involved in storylines, Tolu enjoys music, loves to sing, and is also an avid movie buff.