Crypto Firms Need Mandatory Licensing, Says French Financial Regulator

Barbat-Layani seemed to back a proposal from the French Senate last year that would require crypto firms to seek regulatory recognition before the October 1, 2023, deadline set by the European Union's new Markets in Crypto Assets (MiCA) regulation. According to a tweet posted by the regulator, Barbat-Layani commented at an event, “The AMF, like the parliament, calls for an accelerated move to a regime of obligatory licensing for non-registered providers” of crypto services.

Binance is among several well-known businesses that have become AMF members. The registration process includes audits of the applicant company's management and compliance with anti-money laundering regulations. However, licenses are voluntary in France, so service providers have yet to be approved.

French Deputy Central Bank Governor Denis Beau wrote in Le Figaro that mandatory licensing in the country would be “desirable” before the EU's MiCA law goes into effect in 2024. He based this on the failure of the stablecoin ecosystem Terra-Luna and the crypto exchange FTX. Beau's comments seem to back up rumors that Governor Francois Villeroy de Galhau is behind the initiative. However, the French government opposed a Senate amendment requiring all unregistered crypto companies operating in the country to seek a license; the matter will be discussed by the National Assembly's Finance Committee next week, on January 17.