The French National Assembly has voted in favor of rules that will ease licensing requirements for crypto firms.
This decision offers a sigh of relief for the industry as it will simplify the process for crypto firms to register with the financial regulator.
The amendment proposed by Sen. Daniel Labaronne allows crypto firms to register with the financial regulator following requirements already covered by the European Union’s comprehensive regulation for crypto assets, which will enforce licensing. The vote passed with a tally of 61 in favor and 33 against.
In December, Sen. Herve Maurey proposed an amendment that would have required a higher-tier license that has yet to be obtained by a single company.
This stricter amendment had come in the wake of the collapse of the FTX exchange as policymakers called for a crackdown on crypto regulation.
However, following a push from the crypto industry, Labaronne proposed an amendment that would scrap the high-tier mandatory license and allow crypto firms to register with the Financial Markets Authority following provisions outlined in the EU’s Markets in Crypto-Assets regulation.
These provisions include requirements on governance, reporting to regulators, and segregation of funds.
Companies that are already registered under the existing anti-money laundering provisions will be able to continue to operate until the end of the transition period that MiCA offers, likely in 2026.
With this development, the French crypto industry can now operate with more certainty, and ease of compliance.