In test phase. Stemming from a series of proposals from the European Commission on digital finance, the new pilot scheme concerning the blockchain came into force last spring. For the continental legislator, this means to temporarily relax the law in order to allow industry players to test different mechanisms around the distributed registry technologies (DLT). Now we were waiting to find out how the France and the AMF would be adapting its own regulatory framework to meet the requirements of this European project, scheduled to last three years. This has now been done, and we now know a little more about the changes in French law and in particular on financial securities. If you like your legal texts a little thick, make yourself comfortable and enjoy this dive into the Monetary and Financial Code of our beloved country.
A European pilot scheme to test blockchain with live ammunition
Since July 26 and the publication of an article on theAutorité des marchés financiers (AMF), the French blockchain sector now knows where it stands. The French blockchain industry recent statements of certain representatives of theEuropean Unionprofessionals can now access the details of these changes. Finally, before going any further, it should be remembered that it was the work of the Haut comité juridique de la Place financière de Paris that enabled French law to be adapted to the text agreed in Brussels.
But without further ado, here is the most important change concerning the law financial securities :
« The Act of March 9, 2023 containing various provisions adapting to European Union law (DDADUE) has, in a first stage, made two important amendments to Articles L. 211-3 and L. 211-7 of the Monetary and Financial Code, on the methods of representing financial securities. These amendments to securities law open up the possibility of registering bearer securities in a shared electronic recording device (DEEP), such as the blockchainunder the pilot scheme.
This registration can take two distinct forms:
- « as a registered financial security registered in DEEP stemming from Ordinance No. 2009-15 of January 8, 2009 (and in accordance with Ordinance No. 2017-1674 of December 8, 2017, known as the « Blockchain Ordinance »). ;
- as a bearer financial security registered in DEEP under the DDADUE Act in accordance with the conditions laid down in the pilot scheme »..
France and the AMF are also adapting the regulatory framework to encourage financial innovation
In a second stage, « Decree no. 2023-421 of May 31, 2023 brought the regulatory provisions into line with legislative changes.. In concrete terms, this decree provides a framework for the possibility of entrusting an intermediary with certain tasks, such as the safekeeping of cryptographic keys, in accordance with the conditions set out in the general regulations of the French banking industry. AMF. In fact, the regulator is set to evolve its own regulatory framework in the near future to enable these innovations.
Finally, in a burst of optimism, the AMF is delighted to have finally provided France with a new legislative and regulatory framework. « which will enable the development of innovative projects ».. Project developers of DLT-based financial infrastructures are urged to be visit as soon as possible to the regulator.
We’ll be talking about all this again in the months to come, once the professionals have got to grips with these new legal texts and put them to the test. reality of the field. We will then know whether theEurope really intends to lift legal barriers to enable the continent to become a Web3 stronghold, and if France has a role to play in all this.
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