France has adopted a relaxed approach to digital asset regulation to give virtual asset service providers (VASPs) more time to comply with European regulations.
The French National Assembly has passed an amendment allowing VASPs to continue operating without obtaining a full license. The amendment, proposed by centrist Daniel Labaronne, would give VASPs an additional 18 months to operate as they apply for a full license.
of France, regulators have two tiers to VASP licensing. The first is for companies to register with the industry regulator Autorité des Marchés Financiers (AMF). Over 50 companies have already registered with his AMF.
The second is more aggressive and requires the VASP to obtain an operational license. We don’t have his VASP with this license yet. Last December, Herve Maury proposed a fix. The grace period given to VASPs by French regulators would have expired before they were required to obtain a full license.
French VASPs will only comply with European-wide standards with the EU Markets in Crypto Assets (MiCA) set. Voted later this year the MiCA is expected to pass the European Parliament, but amendments this week will take VASPs another 18 months before they have to comply with stricter standards.
In recent years, France has been striving to establish itself as the crypto hub of Europe. The effort paid off and several major companies set up shop in Paris. The report revealed that the French government opposed his Maurey proposal to adopt a more regulatory approach for fear of scaring away VASPs.
The new amendments have been well received by the digital asset industry. Faustin Fleuret, CEO of French bitcoin industry group Adane, said the move was “to strike the right balance between thriving innovation in France and a safe environment for users.”
“This is also a message to the sector about the exemplary nature and professionalism expected of players on this journey towards European regulatory harmonization,” said Fleuret.
Watch: Law & Order: Regulatory Compliance for Blockchain and Digital Assets
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