François Villeroy demanded stricter licensing standards for crypto firms operating in France.
France’s central bank head also highlighted the present turmoil in the cryptocurrency market.
François Villeroy de Galhau, the Governor of the Bank of France, wants to strengthen the regulatory standards for cryptocurrency businesses. According to a recent report from Bloomberg, the head of France’s central bank has called for tighter licensing requirements for crypto-based firms in the country. His latest decision is a reflection of the ongoing volatility in the cryptocurrency market.
During a speech in Paris on January 5, the governor of the central bank stated that France should not wait for impending EU crypto rules before requiring local Digital Asset Service Providers (DASPs) to obtain licenses.
Villeroy stated:
All the disorder in 2022 feeds a simple belief: France should move to an obligatory licensing of DASP as soon as possible, rather than just registration.
A licensing system for the EU is one of the laws provided by the Markets in Crypto Assets Bill (MiCA) of the European Parliament, which is anticipated to go into effect at some point in 2024.
Crypto Licensing Prior to MiCA Standards
The Financial Markets Authority (AMF), the nation’s market regulator, currently requires “registration” from firms offering cryptocurrency trading and custody. A DASP license is voluntary, and those who hold one are obligated to adhere to several rules regarding how businesses should be organized, run, and funded. However, none of the 60 crypto companies registered with the AMF are currently holding a DASP license, according to Bloomberg.
Moreover, Villeroy’s claim arises after Hervé Maurey, a member of the Senate Finance Commission, presented an amendment in December 2022. This is to get rid of a provision allowing businesses to operate without a license.