Sad crypto events in 2022 and the harsh crypto winter highlighted the need for crypto regulations across the globe. Every nation is trying to bell the cat; recently, France’s President Emmanuel Macron would be signing a crypto bill passed by 109 voted against 71 in an assembly of 180 members.
The legislation for stricter licensing rules for newer crypto firms was voted in favor by the French National Assembly to harmonize local laws with the yet-to-come European Union (EU) standards. The passing status was 60.5% in favor vs. 39.5% against, as the French Senate had already passed the bill. This gives Macron a window of 15 days to either approve or send it back for improvements to the legislature.
If President Macron signs the bill, it will be the law. France-based cryptocurrency service providers must comply with new stricter anti-money laundering (AML) rules and show the segregation of customers’ funds. They also have to cohere the new guidelines, like reporting to regulators & providing detailed risk and conflict of interest disclosures. All this is done to ensure customer protection.
The bill would not affect the sixty crypto firms registered with the nation’s financial regulator, Financial Market Authority (AMF). They already comply with the AMF’s rule and will continue until the EU’s Markets with Crypto-Assets bill is passed. As is expected in July 2023, these strict rules will be applied thereafter.
Herve Maurey, a French Senate finance commission member, initiated this legislative push in December 2022. He proposed the amendment to eliminate the clause enabling crypto firms to operate in the country without a full license till 2026. French Governor Francois Villeroy de Galhau saw similar initiation in a speech on January 5, 2023. He was speaking to the members of the finance sector in Paris.
Walking in the footsteps of many regulators worldwide, Galhau referred to the need for responding to recent devastating and concerning events in the industry, becoming a lighthouse for the bill. He also said that the bill should be effective sooner. The MiCA is supposed to act as a blueprint for the EU cryptocurrency market regulators. Further adding that the country cannot wait for further comprehensive laws.
The EU is supposed to vote on MiCA regulations in April 2023, after postponements twice. Everyone is holding their breath for a positive outcome, and they are expected to come into force in 2024.
Everyone is doing their part in embracing the crypto industry and is developing federal cryptocurrency legislation. The Financial Crimes Enforcement Network (FinCEN) has trouble considering crypto as legal tenders. The Internal Revenue Service (IRS) also does not consider them as legal tender, but to them, it represents a value that acts as a medium of exchange.
Canada has also regulated cryptocurrencies, especially under provincial securities laws. They brought all the crypto entities under Proceeds of Crime (Money Laundering) and Terrorist Financing Acts (PCMLTFA) back in 2014. The British Columbia Securities Commission registered its first cryptocurrency-only investment fund in 2017.
Canadian Securities Administrators (CSA) issued a notice to apply existing securities laws on cryptocurrencies in August 2017. The Canada Revenue Agency (CRA) also taxed cryptocurrencies from 2013, and the Canadian tax laws applied from 2013.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/03/01/france-to-bell-the-cryptocat-to-pass-crypto-licensing-laws-soon/