France proposes to regulate cryptocurrencies

France has offered to tighten cryptocurrency regulations due to the recent FTX market crash.

France proposes strict regulation of cryptocurrencies after the collapse of FTX

A French senator has proposed tightening cryptocurrency regulations after the FTX crash rocked the industry. The decision also comes as the EU’s Crypto Asset Markets Act (MiCA) nears implementation.

The Financial Times noted in its report on Thursday that pressure is mounting on France to plug loopholes in its cryptocurrency regulations.

Currently, France offers a window of less regulatory scrutiny to attract cryptocurrency firms. Hervé Maurey, senator of the finance commission, should change the provision.

This includes removing the permission for registered cryptocurrency companies to operate nationwide without a full regulatory license until 2026.

The report comes as the EU prepares for the full implementation of the Crypto Asset Markets (MiCA) legislation in 2024. Digital Asset Service Providers (DASP) are subject to mandatory registration and AML/CFT compliance in France.

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