French Regulators Are Welcoming Fleeing U.S. Crypto Firms

May 23, 2023 10:33 pm Comments

It looks like regulators in France are welcoming crypto firms that are fleeing the US right now due to the uncertain regulatory environment.

So far, France has around 74 different registered crypto companies and many investors are expecting that number to continue to go up.

This is due to a record amount of companies from the US that are now either diversifying their operations to overseas or just relocating as a whole.

It is clear that the crypto industry will continue to grow in general due to its global decentralized nature, but it is clear that regulation is a huge issue for some regions which will cause those places to miss out on growth.

CoinDesk reports:

“In France, we are proud to be pioneers” with the crypto service asset provider regime, known as PSAN, that was legislated in 2019, Benoît de Juvigny, Secretary General of the Autorité des marchés financiers (AMF), told reporters Tuesday.

“If American players want to benefit, in the very short term, from the French regime, and from the start of 2025 from European arrangements, clearly they are welcome,” he added. “We have good relations and discussions with our U.S. counterparts.”

The legal certainty now apparently achieved in France is only recently gained. In January, lawyers were warning that legislative amendments proposed by the national Senate – eventually watered down – could kill innovation.

With that being said, there are still some questionable regulatory rules that France and the rest of EU may have despite having established a framework.

For example, certain types of crypto ads may still be prohibited and the actual enforcement of regulations is still unclear.

With that being said, only has the situation in the US caused companies like Coinbase and Bittrex to start talking about relocating their operations.

It looks like France will continue to benefit from this in the short-term as many crypto companies are exploring all options on the table in order to survive until the next crypto bull run.

CoinDesk concludes:

France may be predictable and stable, but that’s not the same as being easy or straightforward.
Seventy-four companies, including Binance and Bitstamp, have already been awarded a registration demonstrating basic governance and money-laundering compliance.

Firms can also take the further step of seeking a license, if they have enough capital, though no company has yet acquired one.

Under new transitional measures agreed earlier this year as a bridge to MiCA, companies applying as of July will undergo a “reinforced” registration, in which they have to prove they have resilient IT systems and a conflict of interest policy.

MiCA itself, set to take effect in 2025, grants the right to serve the pan-European market, and extends wider to include services such as crypto investment, advice and portfolio management.

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