France’s financial regulator, Autorité des Marchés Financiers （AMF）, has started accepting applications for crypto asset service providers （CASPs） in preparation for the upcoming Markets in Crypto-Assets （MiCA） regulations.
Points
- AMF begins accepting CASP applications six months ahead of MiCA regulations.
- MiCA will impose uniform rules for AML, cybersecurity, and business conduct.
- Firms currently under the PACTE regime have until July 1, 2026, to transition.
France’s financial markets regulator, the Autorité des Marchés Financiers （AMF）, has commenced accepting applications for crypto asset service providers （CASPs）, ahead of the implementation of the Markets in Crypto-Assets （MiCA） regulations. This proactive step is aimed at ensuring a smooth transition to the new regulatory framework, which comes into effect on December 30, 2024.
France’s Head Start on MiCA
The MiCA regulations will replace France’s existing PACTE regime, imposing stricter rules for Anti-Money Laundering （AML）, cybersecurity, and other business operations. Firms providing any of ten specified crypto-related services will need CASP authorization. These services include managing and safeguarding crypto assets, operating trading platforms, and converting crypto assets to funds.
Transition Period and Compliance
Firms currently operating under the PACTE regime will have until July 1, 2026, to obtain CASP authorization. During this period, these firms will not have the European “passport” that allows operations across the EU, unless they transition to the new authorization. The AMF encourages firms to begin preparations early to ensure compliance with the stringent MiCA requirements.
Early Compliance by Leading Firms
Some companies are already taking steps to comply with MiCA. For instance, Circle, the issuer of USD Coin （USDC）, announced in July that it had become MiCA compliant and would establish its European headquarters in France. Similarly, Cardano has declared its compliance with MiCA regulations.
解説
- MiCA Regulations: The Markets in Crypto-Assets （MiCA） regulations are a comprehensive framework designed to standardize crypto regulations across the European Union. This will enhance legal certainty and protect investors by imposing uniform rules for AML, cybersecurity, and business conduct.
- Impact on Firms: The transition to MiCA will require firms to upgrade their compliance mechanisms significantly. Early preparation is crucial to meet the new standards and to avoid disruptions in operations.
- Strategic Positioning: By starting the application process early, the AMF positions France as a proactive regulator in the EU, potentially attracting more crypto businesses to set up operations in the country.
- Investor Protection: The stringent requirements under MiCA aim to enhance investor protection and market integrity, making the crypto market safer and more reliable for participants.
In summary, the AMF’s early acceptance of CASP applications sets a proactive tone for the upcoming MiCA regulations, ensuring that firms can transition smoothly to the new framework and comply with stricter standards aimed at enhancing market integrity and investor protection.