The governor of the Bank of France, Francois Villeroy de Galhau, has called for mandatory licensing for local digital asset service providers (DASPs) in the country, instead of just registration, as a response to recent turmoil in the cryptocurrency markets.
Currently, DASP licensing is optional in France, with only 60 out of the country’s registered cryptocurrency firms choosing to obtain one.
These firms are required to meet certain requirements related to business organization, conduct, and financing.
An amendment proposed in December by a member of the Senate finance commission would eliminate the clause allowing companies to operate without a license.
However, current laws in France allow firms to operate unlicensed until 2026, even if the Markets in Crypto Assets bill (MiCA) passes into law and establishes a licensing regime.