With six months remaining before the European MiCA
Regulation’s provisions on crypto-asset services take effect, the Autorité des
Marchés Financiers (AMF) has begun accepting applications for authorization to
operate as a crypto-asset service provider. This authorization will be required
from 1 July 2024.
MiCA Regulation Requires Authorization
The European MiCA Regulation will come into force on 30
December 2024, requiring all market participants who wish to offer crypto-asset
services within the European Union to obtain prior authorization.
The regulation covers ten specific services: managing and
safeguarding crypto-assets for clients; running a crypto-asset trading
platform; converting crypto-assets to funds; swapping crypto-assets for other
crypto-assets; executing orders for crypto-assets for clients; facilitating the
placement of crypto-assets; handling and transmitting crypto-asset orders for
clients; advising on crypto-assets; managing crypto-asset portfolios; and
transferring crypto-assets for clients.
Providers will need to adhere to several common rules under
MiCA, including anti-money laundering measures, cyber security requirements,
and standards of conduct. Specific obligations will vary depending on the type
of services provided.
France begins accepting crypto service license applicationsFrance’s financial regulator, the Autorité des Marchés Financiers (AMF), is now accepting applications for crypto asset service provider (CASP) licenses, making it the first major EU economy to implement the upcoming…
— CoinNess Global (@CoinnessGL) August 2, 2024
Transition Period for MiCA
MiCA will replace France’s existing PACTE regime for new
market participants from 30 December 2024. Providers already operating under a “simple” or “enhanced” registration or optional DASP authorization under the
PACTE Law will have until 30 June 2026 to obtain MiCA authorization.
This transition period allows them to continue their
activities until 1 July 2026. However, providers with “simple” or “enhanced”
registrations, or optional authorizations, will not benefit from the European
passport during this transition. They will need to ensure their services comply
with regulations in other Member States during this period.
The MiCA authorization requirements are more stringent than
the French regulations for “enhanced” and “simple” DASP registrations.
The AMF
advises interested parties to begin preparations early to comply with the new
European framework. For detailed information on the MiCA Regulation and
guidance on application procedures, the AMF has published a new In-depth report
on its website.
This article was written by Tareq Sikder at www.financemagnates.com.
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