The regulation of cryptocurrencies in France has reached a significant milestone as the Autorité des Marchés Financiers (AMF) has begun accepting applications from crypto asset service providers. This proactive approach comes ahead of the implementation of the European Union’s (EU) Markets in Crypto Assets (MiCA) regulations, set to take effect on December 30th. The AMF’s initiative aims to facilitate a smooth transition for service providers into the new regulatory framework.

Application Details for Crypto Service Providers

The AMF announced on its website that applications have been open since July 1st. This allows crypto asset service providers ample time—about six months—to prepare for compliance with MiCA requirements. The EU will enforce MiCA regulations starting December 30th, with the AMF specifying that ten types of crypto asset services will require EU authorization from that date. These services include:

1. Custody and administration of crypto assets on behalf of clients.

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2. Operation of a crypto asset trading platform.

3. Cryptocurrency trading.

4. Execution of crypto asset orders on behalf of clients.

5. Provision of advice on cryptocurrencies.

6. Portfolio management involving crypto assets.

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7. Offering of crypto transfer services.

Compliance and Security Obligations

Under MiCA, crypto asset service providers must adhere to various compliance and security obligations. The AMF highlights several key requirements:

– Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF): Providers must implement robust measures to prevent money laundering and terrorist financing activities.
– Cybersecurity Obligations: Stringent cybersecurity measures must be in place to protect digital assets and client data.
– Custody and Segregation of Assets: Where applicable, providers must comply with regulations concerning the custody of funds and the segregation of assets.

Transition Periods and Full Compliance Deadline

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The AMF has indicated that there will be transition periods in certain circumstances to facilitate the shift to the new regulatory framework. However, all EU crypto asset service providers must obtain MiCA authorization by July 2026.

Impact on the Crypto Asset Sector

The introduction of these regulations is aimed at enhancing trust and security in the crypto asset sector. While the new standards promote greater transparency and stability, they also present challenges, especially for small businesses. These entities may find it difficult to meet the complex and potentially costly regulatory requirements.

The AMF’s proactive steps towards the implementation of MiCA regulations mark a crucial development in the regulation of cryptocurrencies in France. This move is expected to strengthen the market’s integrity and protect investors, setting a new standard for the crypto industry within the EU.

Source: cointribune.com

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