The governor of the Bank of France is calling for stricter and more comprehensive licensing requirements for cryptocurrency companies in France given the recent turmoil in the market. The head of the central bank said France should not wait for the upcoming MiCA regulation to enact obligatory licensing for local digital asset service providers (DASPs).
Francois Villeroy de Galhau, governor of the Bank of France, said during a speech in Paris on January 5, that the recent chaos in the crypto markets necessitates that France moves ahead with a mandatory licensing scheme for crypto firms “as soon as possible,” according to reports by Bloomberg. The governor said that France should not wait for the upcoming EU crypto laws – the Markets in Crypto Assets bill (MiCA), to come into effect before enacting mandatory licensing for DASPs.
France Needs to Act Before MiCA Comes into Force
Villeroy addressed France’s financial industry in his speech, saying:
All the disorder in 2022 feeds a simple belief: it is desirable for France to move to an obligatory licensing of DASP as soon as possible, rather than just registration.
The European Parliament’s MiCA is expected to potentially come into force in 2024 and will provide a crypto licensing regime for the European Union.
As it stands in France, the Financial Markets Authority (AMF), the nation’s market regulator, requires “registration” from cryptocurrency firms offering trading and custody services. A DASP license is currently voluntary per Bloomberg, and none of the service providers hold one. The less strict “registration” from the AMF is held by about 60 businesses.
Villeroy’s calls come after Hervé Maurey, a member of the Senate Finance Commission, in December 2022 proposed an amendment that would do away with the provision allowing businesses to operate without a license.
In December reports were circulating that France is considering an obligation for crypto firms to obtain a full license before they can operate. The government then already expressed concern over the lack of regulation and oversight in the crypto space in the wake of the recent bankruptcy of FTX.
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