Legislators at France’s National Assembly are planning to force crypto firms to apply for licenses starting Jan. 1, 2024.
According to Daniel Labaronne, one of the caucus members responsible for the new legislation, the local Finance committee gives new entrants one more year to get the necessary registration and authorization.
The latest attempt by the legislatures will complement France’s optional enforcement requirements for professional digital asset providers operating within the country.
The authorization will be compulsory under the proposed European regulation on the crypto-asset markets, known as the MiCA regulation, which is set to become active in spring 2024.
There have been a lot of reactions concerning the proposal, given that France’s goal of becoming a crypto hub can be squashed with complex licensing procedures.
However, French Senate member Herve Maurey justified the proposals and tightened measures. He stated that due to the devastating effects of the FTX debacle, there is a need to upscale French laws to provide stricter authorization for crypto companies wishing to operate in the France economy.
Recall that on Jan.5, France Governor Francois Villeroy de Galhau reiterated the need to impose more stringent licensing requirements on existing digital assets providers (DASP) before MiCA comes alive in 2024.