French Regulator Accepts CASP Applications Ahead of MiCA Rollout
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France’s financial markets watchdog, Autorité des marchés financiers (AMF), is now taking applications from cryptocurrency asset service providers (CASPs). This comes six months before Markets in Crypto-Assets (MiCA) rules start.
Starting December 30, companies offering any of the ten crypto services will need CASP authorization. This will enforce consistent rules for Anti-Money Laundering, cybersecurity, Countering Terrorism Financing, and other business practices.
The MiCA Rules Are Set To Replace France’s PACTE System
The MiCA rules will replace France’s PACTE system. Companies that weren’t previously regulated or have digital asset service provider approval under PACTE will have until July 1, 2026, to switch to CASP authorization. More than 100 such companies exist.
According to the update, these businesses won’t get the European “passport” to work in other countries that are part of the European Union until they have CASP authorization. With MiCA, being approved in one EU country allows a firm to work in any EU country.
The Autorité des marchés financiers said MiCA rules from European lawmakers are tougher than French rules. It advises interested parties to start preparing as soon as they can.
The regulatory authority has been getting ready ahead of time for the changeover to MiCA regulations. It started modifying national rules to match MiCA requirements and worked on strategies to help Digital Asset Service Providers (DASPs) transition to Certified Asset Service Provider (CASP) status during 2023.
Companies And Crypto Exchanges Take Steps To Comply With MiCA Regulations
Some companies have started following the new MiCA rules. For instance, Circle, which issues USD Coin, said in July that it had met MiCA requirements and would set up its European headquarters in France. It had already registered as a Digital Asset Service Provider (DASP).
Cardano has also announced that it is now following MiCA rules. MiCA legislation was passed by the European Parliament in April 2023.
Financial firms in France are overseen by the AMF. The regulator was founded by the Financial Security Act of 2003. It is a separate organization that works to keep investments safe and improve openness in financial products.
The regulator is also responsible for ensuring that the country’s financial services are free from fraud and money laundering and that financial markets operate smoothly. As a rule-maker, the regulator must follow the EU’s MiFID II guidelines and its own general regulation.
The authority, led by a Secretary-General and governed by a board, can examine, enforce, and prosecute rule breaches. It has recently expanded its scope to include digital asset issuers, service providers, markets, brokers, listed companies, advisers, and investment managers.
