• The Bank of France has proposed that France compel crypto companies to obtain a full license to operate in the country.
• The current proposal would require companies to apply for a full license from the financial authority beginning in October, in order to comply with EU regulations.
• Francois Villeroy de Galhau, Governor of the Bank of France, has suggested stronger regulatory standards for crypto businesses, citing recent volatility in the market.
The Bank of France has announced that it is now mandatory for crypto firms to obtain a full license in order to operate in the country. The proposal is being put forward in order to harmonize the country’s legislation with incoming EU regulations and to prevent any similar incidents to the recent bankruptcy of FTX from happening.
Under the current proposal, companies would have to apply for a full license from the financial authority beginning in October. This would bring them into compliance with the EU’s Markets in Crypto Assets (MiCA) regulation, which the European Parliament is expected to vote on in 2023. This comes as part of a greater trend of increased regulation in the cryptocurrency space, as authorities seek to protect investors and consumers from potential risks.
The Bank of France’s Governor, Francois Villeroy de Galhau, has been one of the strongest advocates of increased regulation. He has suggested that stronger regulatory standards need to be imposed on Digital Asset Service Providers (DASPs) without waiting for European regulations to take effect. Villeroy has cited recent volatility in the market as a major reason why tougher regulations are necessary, in order to protect consumers from any potential risks.
The French government is now taking a serious look at the potential risks and rewards of allowing crypto companies to operate within the country. It is clear that the authorities are keen to ensure that strict regulations and licensing requirements are in place in order to protect the interests of investors and consumers. It remains to be seen how the EU’s MiCA regulation will impact the future of cryptocurrency regulation in France, but it is likely that the country will continue to take a proactive stance in regulating the space.