The resounding bankruptcy of the FTX exchange platform and the discovery of other malfunctions during the year 2022 have accelerated the tightening of regulations in the crypto sector. In France, parliamentarians took advantage of a bill containing various provisions for adaptation to European Union law, last February, to impose new requirements on companies wishing to offer crypto services (conservation, sale, etc. ) on the French market.
From July 1, players wishing to file an application to register with the Autorité des marchés financiers (AMF) as a digital asset service provider (psan) must do so via a reinforced procedure. Since the Pacte law of 2019, this registration has been compulsory in a so-called “simple” form, with mainly requirements of good repute and competence of managers and shareholders, as well as obligations in terms of the fight against money laundering and the financing of terrorism. This same Pacte law provided for another regime, this one optional, called “authorization”, requiring in particular guarantees relating to equity, guarantees in terms of cybersecurity or rules to avoid conflicts of interest. The standards necessary to obtain this approval have also largely inspired those retained for the future approval which will become mandatory at the level of the Twenty-Seven with the European regulation MiCA (Markets in Crypto-Assets), adopted this year and which will come into force at the beginning of 2025.
French parliamentarians had also initially thought of making this approval compulsory from this fall for French players in the sector. But the step to cross between registration and approval is very high in terms of compliance, too much even for young companies in such a tight time frame, argued the Association for the Development of Digital Assets (Adan), which defends web3 actors. Moreover, no player in France has so far requested and obtained approval from the AMF.
Hence the compromise found around this “enhanced registration”. Among the new requirements to be authorized by the AMF to carry out activities in France, some, which are obvious, do not pose any difficulties, such as the segregation of assets, providing customers with clear, accurate and non-misleading information, publishing prices or put in place a complaints handling policy. Others are much more expensive and complicated, particularly in terms of computer system security.
For at least a year, three different regimes will therefore coexist in France, since the psan already registered will not be affected by the reinforced regime. A complex “French exception” to manage also for the French authorities. “This transition to a reinforced framework is a condition for the return of confidence in the crypto ecosystem”, estimated, in April, Marie-Anne Barbat-Layani, president of the AMF. The regulator must both support the players in this new framework and educate the general public to help them understand the differences. The authorities must also process a growing number of files filed, with response times that are getting longer, complain some players in the crypto industry. “We have a team that is indeed very very busy. But when the files are perfect, it’s also faster, ”replies Benoît de Juvigny, secretary general of the AMF. The regulator is working with the Prudential Control and Resolution Authority (ACPR) on these files.
At the end of June, 82 companies were registered with the AMF as psan, including the global giant Binance and many foreign players. Among the latest registered, the Caceis bank, a subsidiary of the Crédit Agricole and Santander groups, has joined other players in traditional finance, such as Société Générale (through its subsidiary Forge), Axa IM or Banque Delubac. These players are increasingly positioning themselves in the world of crypto-assets to meet growing demand from management companies and institutional players for these new assets. “The rapprochement between traditional finance and the crypto-asset industry is intensifying,” confirms Faustine Fleuret, president of Adan.
From January 2025, MiCA will replace the French regime. Any actor who has obtained authorization from a national authority will be able to carry out his activities throughout the Union.