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(Kitco News) - Following the adoption of the Markets in Crypto-Assets (MiCA) regulation by the European Parliament on April 20, regulators in France have proposed a “fast track” option for licensed crypto firms in the country to get licensed under the new law.
According to a statement released by the French Financial Markets Authority (AMF), the agency is currently evaluating the option of providing companies with a “fast track” option which would allow them to come into compliance with MiCA regulations as soon as possible.
Based on the way the legislation was crafted, the MiCA law will not go into effect for 18 months from the date it enters into force. The European Council is scheduled to do its final vote on the legislation on July 1, which means that the earliest the law will not go into effect is January 2025. Delayed enforcement was chosen in order to allow companies to prepare for the transition.
A primary focus for the AMF over the next 18 months will be to assist French providers of digital assets services (PSANs) in making the transition and being prepared for when the law takes effect.
PSANs currently operate under the PACTE law, which was enacted by French regulators in May 2019 and established a specific regime for offering token sales to the public and for providers of digital asset services.
While MiCA will allow French companies to offer their services throughout the European Union, they will not be able to do so during the 18-month integration period, but they will be able to continue serving French citizens under the PACTE law.
Even though the text of MiCA is formalized, legislators in the EU still have more work to do on the crypto front as several high-profile sectors of the cryptocurrency ecosystem are not addressed by the law.
This includes non-fungible tokens (NFTs) and decentralized finance (DeFi) applications.
According to the AMF, “The European Commission will be responsible for assessing the development of this new market and the need to propose a specific regime for NFTs within 18 months of the entry into force of the text.” The Commission will also need to “carry out an assessment of the development of decentralized finance and its regulatory framework.”
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| Bank of France discussion paper explores the risks and regulation of DeFi |
Overall, the AMF has welcomed the adoption of MiCA and thinks it will “help to increase the competitiveness of French and European players by creating a harmonized framework in Europe and ensure better protection for investors.”
The AMF is also assisting the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) with drafting the texts that will specify the implementation of certain provisions of the regulation so that French firms can access and implement these technical standards as quickly as possible.
According to the announcement, the AMF has already begun consulting with the Prudential Supervisory and Resolution Authority (ACPR) to work with “players and professional associations to support the transition from the French framework to the European framework.”
