French Senate Finance Committee member Hervé Moray has proposed an amendment which would remove the precondition for crypto firms to obtain a regulatory license.
Instead, minimal regulatory oversight would be required through 2026.
The plan is to convince the government of the merits of offering more leeway to incoming crypto companies, allowing them a longer grace period when looking to set up shop under a new regulatory regime.
This comes in the broader context of the European Union passing tougher regulation on the sector come 2024.
However, France intends to buck this trend and uphold its own rules through 2026. The discussions come after Sam Bankman-Fried’s FTX cryptocurrency exchange collapsed, taking billions worth of assets with it.
Meanwhile, several companies have already set up shop in France. Cryptocurrency exchange Binance opened offices in Paris earlier this year. Crypto.com has also established a presence.
However, Moray’s suggestion is not overlooking the risks of regulating the industry, it just offers a different path towards regulation.
The proposal firmly backs the idea of companies registering with the national financial regulator, the Autorité des Marchés Financiers (AMF).
A license would help bolster consumer protection and hold companies accountable. The present system means that consumers could misinterpret that “minimal oversight” as “regulated” and trust cryptocurrency companies while believing they are fully regulated.
The amendment has already passed through the Senate, and it will be up for consideration during a Parliament hearing in January.
France has been reluctant to pass sweeping reforms quickly, arguing that the country is interested in ensuring that it continues to attract innovation instead.