French regulators have been designing a regulatory framework to attract crypto firms fleeing U.S.’s changing governing framework. Meantime, France welcomes cryptocurrency firms that can’t tolerate United States’ regulatory environment. The officials promise a predictable supervisory landscape for crypto businesses.
The EU member currently has approximately 74 licensed cryptocurrency firms, including Bitstamp and Binance. The number will potentially increase to above 100 as companies plan new moves following the European Union’s MiCA rules – signed off earlier on Tuesday.
Yesterday, AMF Secretary General Benoit de Juvigny told reporters that France remains a proud pioneer in offering cryptocurrency services, citing the 2019-legislated PSAN (prestataire de service sur actifs numeriques). SPAN regulatory framework governs cryptocurrency entities that French monetary regulators watch.
De Juvigny added that they have good relationships and communication with United States lawmakers, welcoming American crypto players that want to benefit from French’s predictable regulatory atmosphere.
However, France attained legal certainty recently. Early this year, lawyers warned about legislative amendments the national Senate proposed, stating that they might kill innovation. Moreover, some gray areas exist.
Some France uncertainty
For instance, French regulators are still working on the types of cryptocurrency influences that can promote the crypto business. The European Union deliberates on strategies to monitor monetary services without a central entity. Meanwhile, Juvigny promised that the AMF would update on some concepts in the coming weeks.
Nonetheless, France has its legal framework set, contrarily to the happening in the United States. Recently, notable players, such as Coinbase and Bittrex, revealed dissatisfaction with the U.S. environment. The firms cited regulatory ambiguity resulting from active regulatory implementation and vagueness from Washington’s crypto law.
MiCA (Markets in Crypto Assets) is the new European Union legislation overseeing the provision and issuance of crypto and stablecoin offerings. The EU Parliament adopted this first-of-kind framework on 20 April this year, and the EU Council signed it off yesterday. The law will start operating in early 2025.
The EU remains an attractive option for most crypto firms unsatisfied with U.S.’s unclear approach to crypto regulation.