- Bank of France’s Governor stressed the need for strict regulatory frameworks for crypto firms.
- Francois Villeroy de Galhau made this statement before the voting of MiCA regulation.
- The MiCA regulation would establish licensing policies for the crypto firms.
As the crypto winter starts melting away, the Bank of France’s Governor Francois Villeroy de Galhau stressed the need for strict regulatory frameworks for crypto firms. Galhau made this statement before the voting of the European Union’s landmark Markets in Crypto Assets (MiCA) regulation.
According to a report by Bloomberg, Galhau reminded regulators that the recent volatility in the blockchain sector means France shouldn’t wait for European rules to come into effect before making it obligatory for Digital Asset Service Providers (DASP) to obtain licensing from authorities.
The MiCA regulation would establish licensing policies for the crypto firms and guide the regulators in managing the blockchain industry. The vote on the MiCA regulation is scheduled for February.
Addressing the current scenario of the crypto sector in Paris, the Bank of France’s Governor expressed:
All the disorder in 2022 feeds a simple belief: it is desirable for France to move to an obligatory licensing of DASP as soon as possible, rather than just registration.
Reports claim that the regulations in France are optional. Even though more than 60 crypto industries, such as Binance Holding Ltd, proclaimed to have obtained the license, those blockchain-based industries have received only “DASP registration/optional licensing” from Autorité des marchés financiers (AMF).
DASPs are required to follow certain criteria to obtain the license from AMF. AMF indicates that the criteria could be based on the organization type, financial resources, business conduct, and more.
In case the MiCA regulation is passed, crypto industries would have to register within 12 to 18 months after the finalized draft of the law is published.
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Source: https://coinedition.com/bank-of-france-head-stresses-the-need-for-strict-crypto-regulation/