The French government recently amended the country’s blockchain and cryptocurrency regulatory framework in line with the provisions of the recently released Markets in Crypto-assets (MiCA) licensing regime. This regulatory change is meant to facilitate the streamlined and secure trading of digital tokens as well as make operations and activities involving cryptocurrencies more transparent and safer.
According to the new regulations, any company involved in the trading of tokens classified as virtual assets or associated derivatives will be required to apply for a MiCA license. This includes activities related to custody of digital assets, payment services, exchange services, issuance and management of digital tokens, and trading of digital assets. Additionally, all companies must abide by strict anti-money laundering and counter-terrorist financing rules.
Furthermore, all companies must also put in place effective governance policies, corruption prevention guidelines, and consumer protection protocols as well as have adequate financial resources and appropriate control systems. Companies must also comply with data privacy laws, consumer rights, and product safety laws.
The French government was one of the first to introduce its own blockchain and cryptocurrency regulatory framework when it issued the Loi PACTE law two years ago. This law was meant to provide a legal framework for blockchain technology and digital assets. Now, with the implementation of the MiCA licensing regime, the country is further strengthening its cryptocurrency regulations.