Are You in the World of Crypto? Here’s How to Avoid Major Problems According to the AMF!

The regulation of cryptocurrencies in France takes a new important step. Indeed, the French regulator, the Autorité des Marchés Financiers (AMF), has begun accepting applications from crypto asset service providers. This approach precedes the entry into force of the European Union (EU) rules on crypto asset markets (MiCA).

Details of applications for crypto service providers

The AMF announced on its website that it has been accepting applications from crypto asset service providers since July 1st. The regulator opened applications about six months before the implementation of MiCA rules, allowing providers to prepare and comply with the new requirements. The EU plans to enforce the MiCA regulation on December 30th. The AMF specified that ten crypto asset services will require EU authorization from that date.

These services include the custody and administration of crypto assets on behalf of clients, the operation of a crypto asset trading platform, and cryptocurrency trading. The list also includes the execution of crypto asset orders on behalf of clients, the provision of advice on cryptocurrencies, portfolio management, and the offering of crypto transfer services.

Compliance and Security Obligations

Crypto asset service providers must comply with a set of obligations under the MiCA regulation. The AMF emphasizes the need to adhere to measures against money laundering (AML) and counter-terrorist financing (CTF), as well as stringent cybersecurity obligations.

If applicable, requirements concerning the custody of funds and the segregation of assets will also apply. The AMF noted that transition periods will be allowed in certain circumstances. However, all EU providers must obtain MiCA authorization by July 2026.

The new regulations, although strict, aim to strengthen trust and security in the crypto asset sector. Providers will have to quickly adapt to comply with the new standards, which could promote greater transparency and stability in the market. However, this transition will also pose challenges, particularly for small businesses that may struggle to meet the complex and costly regulatory requirements.