France is planning to introduce tougher rules on internal controls, conflicts of interests, and cybersecurity for crypto companies, as of January 1, 2024.
The move was no doubt motivated by the unravelling of the cryptocurrency sector in 2022 and the demise of prominent and trusted cryptocurrency exchange FTX.
The text that passed a special legislative committee should be approved in the Senate by February 16, and then pass a floor vote in the National Assembly on February 28, setting new regulatory mandates in motion.
This comes as countries around the world are pushing forward with new cryptocurrency rules.
The European Union has introduced a draft framework for the regulation for crypto, with other jurisdictions such as Australia, the UK and South Korea all working on their respective legislation.
France’s new laws will require companies that want to operate in the crypto vertical in the country to register with the Financial Markets Authority, which will oversee compliance with anti-money-laundering norms set out by the government, along with the other prerequisites set in the new legislation.
The changes were hailed by the crypto industry as “pragmatic” in nature and not antagonizing, unlike in the US where the Securities and Exchange Commission is being criticized for going after cryptocurrency companies who offer staking.
France seems to be moving in the right direction, attempting to set clear and robust standards for the industry instead of looking for reasons to dismantle it.
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