Lucas Martin
In January 2023, the French Parliament will hold a debate regarding the repeal of favorable treatment for cryptocurrency firms.
Due to the global push towards increased regulation of cryptocurrencies in response to recent market failures, France's more lenient approach to licensing digital asset providers may come under reconsideration. This could go against the country's attempts to portray itself as one of the most supportive nations for crypto endeavors in Europe.
Hervé Maurey, a member of the French Senate's finance commission, has proposed an amendment to remove the clause that allows cryptocurrency companies to operate without a full license until 2026, despite the Markets in-Crypto Assets (MiCA) law coming into effect in 2024, as reported by the Financial Times.
Maurey's amendment will no longer allow companies to operate without thorough scrutiny, as they will be required to obtain a license from the Autorité des Marchés Financiers (AMF) by October 2023. According to Maurey, the collapse of FTX was a defining moment in that regard:
“This led a number of players within the French system to consider that things needed to be supervised more tightly.”
At least 50 companies are registered to operate in France without an AMF license. Thierry Philipponnat, a former member of the AMF board, says the level of investors' protection within this regime is "very light if not non-existent."
On Dec. 13, the Senate adopted the amendment, which will now be brought to Parliament for debate in January 2023. However, the Developing the French Digital Asset Industry (Adan) association is dissatisfied, claiming that it is a sign of the French government “abandoning an industry of the future”.
Emmanuel Macron's administration, now in its second presidential term, is known for being an outspoken proponent of the digital assets industry. As the country headed towards the second round of the presidential election in April, Macron pointed out the need to increase the number of tech unicorns in France, encouraging the development of an NFT policy and a “European metaverse.” Nevertheless, Macron also expressed doubts towards the self-governing financial sector.