Dura lex, sed lex. Requirements for registration as a PSAN (Service provider for digital assets) are already drastic for crypto-companies wishing to operate in France. As for approval PSAN, let’s not even talk about it, since only the FORGE subsidiary of Société Générale bank succeeded in obtaining it from the Autorité des marchés financiers (AMF). However, all these conditions become even tougherto meet even stricter standards MiCA regulation of the European Union.
AMF to comply with EU MiCA regulation from January 2024
The MiCA regulation (Markets in Crypto Assets) is now enshrined in law, and will apply to stablecoin issuers from June 2024.. Despite an already stringent regulatory environment in France, theAutorité des marchés financiers has just published on Thursday, August 10, 2023 ads from regulatory changes on crypto-assets.
Among the reasons The reasons given for this update include the need to comply with the European MiCA regulation:
« The majority of the amendments to Book VII of the General Regulation are aimed at aligning, as of January 1, 2024, the provisions applicable to licensed NSPs with the provisions of Title V of the MiCA Regulation applicable to crypto-asset service providers (CASSPs). »
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Additional obligations for PSANs
As well as registration that approval as a PSAN will be « strengthenedaccording to the AMF press release. As a result, new crypto-companies wishing to register under this status will be required, from 1er January 2024, comply with :
« A new article 721-1-2 of the AMF General Regulation, effective January 1, 2024, is created (…) for enhanced PSAN registration: adequate security and internal control arrangements, conflict of interest management arrangements, clear, accurate and not misleading information, public pricing policies, specific custody provisions (segregation of client assets vs. own assets), prohibition on using client assets without their prior express consent, agreement signed with clients, resilient and secure IT system. »
Crypto-companies that have (or will have) obtained their PSAN registration before the 1er next January will have the chance to benefit from a « grandfather clausewhich will enable them to avoid having to comply with the new requirements. What’s more, this PSAN registration will then become mandatory (and no longer optional) for new players, if they wish to provide at least one of the four services subject to mandatory registration.
Business gets tougher for cryptosphere players in France and Europe. They will have to make even more intense efforts to compliance. They can take comfort in the fact that at least, unlike the United Statesthey can rely on legal texts. In the USA, unfortunately, it’s the SEC (Securities and Exchange Commission), which decided to make rain and shine, while persisting in failing to provide crypto players with a clear regulatory framework.
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