France will adopt the European Union’s strict regulations against new crypto firms entering the local market. The country’s lawmakers approved this move after 109 votes went for the motion against a 71 counter-vote.
The adopted crypto regulation, which passed the lawmaker’s table, will now need the endorsement of France’s president, Emmanuel Macron, to be passed into law. The draft law will require extra layers of verification and requirements for crypto companies trying to use France’s financial markets.
Existing Companies Will Have to Upgrade Verification
The newly adopted crypto regulation will also require that existing companies in France apply for higher verification. The European giants before now only required a two-tier verification system. Crypto companies only needed to file for simple regulations with local regulator L’Autorité des marchés financiers to operate in the country.
Over 60 companies already operating in the country have until European Union law is fully implemented to apply for higher verification. None of these companies filed for full licensing when moving into the company. This was because it was optional, a trend set to change soon.
French Senator Hervé Maurey proposed that the law be immediately imposed on existing firms. Other lawmakers and the industry didn’t accept the proposal. Instead, they agreed that new crypto firms entering the market should get a full license before operating.
More Countries Follow the Crypto Crackdown Trend
It is no longer news that many countries are becoming cautious of the crypto sector after the FTX capitulation. The demise of the American exchange affected many other companies like BlockFi, and Genesis, just to mention a few.
Aside from the recent Securities and Exchange Commission crackdown, the United Kingdom is also planning stricter laws on the sector. The EU was the first to detect how local banks hold crypto, imposing a 1250% risk weighting principle.
The Market in Crypto Assets (MICA) adopted by France will be passed as early as April but will not take full effect until 2026. Crypto firms like Binance, Bitstamp, and Crypto.com are already licensed in the country. They will have to apply for full licensing or risk discontinuing operations in France.
