Crypto: The Bank Of France And The AMF Call For Urgent Action

As Bitcoin approaches the symbolic barrier of 100,000 dollars, investor enthusiasm for cryptocurrencies reaches a peak. However, traditional financial institutions are trying to curb this euphoria. In a recent forum, François Villeroy de Galhau and Marie-Anne Barbat-Layani, respectively presidents of the Banque de France and the AMF, call for enhanced supervision of cryptocurrencies at the European level, entrusted to Esma to better protect investors.

The AMF pushes for increased European regulation

In a context where crypto transactions are exploding, the AMF wants to centralize regulation at the European level. Moreover, it is aware that crypto divides investors. Currently, each member state maintains control over the supervision of cryptocurrencies, but for the AMF, this approach proves insufficient in light of the risks associated with altcoins and other crypto assets.

The French authority therefore advocates for a “direct supervision by Esma” to ensure a consistent application of regulation across the continent. The president of the Banque de France, François Villeroy de Galhau supports this idea, believing that Esma should become the “supervisor of supervisors“.

Zum Schutz der Anleger braucht die EU endlich eine effiziente Aufsicht, um Krypto-Dienstleister zu kontrollieren, meinen François Villeroy de Galhau und Marie-Anne Barbat-Layani. https://t.co/bb2oPJDwsV

— Handelsblatt (@handelsblatt) November 12, 2024

According to him, a centralized regulation:

• would better protect investors;
• would fight against money laundering;
• would reduce hidden transactions;
• would monitor global players;
• would ensure better legal security.

For the AMF, leaving this supervision to local authorities exposes investors to disparate regulations. “The crypto asset markets are cross-border and, by nature, international,” he reminds.

Esma, based in Paris, could thus become a European equivalent of the U.S. SEC, but several EU countries are still reluctant.

A crypto regulation in question within the EU

Although the idea of centralizing supervision is gaining ground, some European states remain attached to their own regulations and prefer to maintain control. The AMF, however, believes that the lack of common supervision presents significant risks for investors, some of whom could be caught in dubious transactions.

This risk is even more pronounced with the speed of diffusion of crypto products via the Internet, where local regulators struggle to control the exposure of their citizens.

For the moment, the European Union has introduced the MiCA regulation (Markets in Crypto-Assets) to establish a general framework for crypto assets, and to boost the growth of stablecoins. But the AMF and the Banque de France emphasize that this legislation alone is not enough.

According to them, “experience shows that simply implementing European regulation does not guarantee its strict and homogeneous application.” In other words, without a single body to oversee its application, this text could become an empty shell.

By adopting a posture of investor protector, the AMF is trying to strengthen the regulatory framework around cryptocurrencies. Since July 1st, it has been offering digital asset service providers advice to avoid major problems. It remains to be seen whether this desire for centralization will find a favorable echo among EU states.