The French Financial Markets Authority (AMF) has suggested a “fast track” option for licensed crypto firms in France to be regulated under the upcoming Markets in Crypto-Assets (MiCA) laws. In a statement released on April 21, the AMF welcomed the approval of MiCA and explained how French regulation will proceed during the transitory period over the next 18 months.

MiCA is a proposed law aimed at establishing a consistent regulatory framework for crypto assets among the European Union member states. The law was passed by the European Parliament on April 20, after two delays starting in November 2020. It still needs approval from the European Council before final passage.

The AMF statement noted that during the transitory period, which will end in October 2022, crypto asset service providers in France may continue to operate under the existing regime. However, they may also choose to apply for a license to operate under the new MiCA framework. The AMF explained that firms that opt for this approach and provide complete documentation would be given fast-track treatment.

The fast-track approach is designed to make it easier and quicker for licensed crypto firms in France to transition to the new regulatory framework established by MiCA. The approach would also ensure that firms comply with the new rules in time for the end of the transitory period. However, the AMF clarified that the fast-track option would only be available to licensed firms that apply before January 2022.

The AMF also provided further details on how crypto asset service providers in France would be regulated under MiCA. The statement noted that MiCA would introduce a new licensing regime for crypto asset service providers, including issuers, custodians, and trading platforms. The AMF will act as the national competent authority in France for MiCA, responsible for authorizing and supervising crypto asset service providers.

The statement further explained that crypto asset service providers in France would be subject to ongoing regulatory obligations under MiCA. These obligations would include requirements related to governance, risk management, cybersecurity, data protection, and anti-money laundering. The AMF noted that the exact obligations and requirements would be detailed in the regulatory technical standards that are expected to be published by the European Commission in the coming months.

The AMF’s proposal for a fast-track option for licensed crypto firms in France is seen as a positive development by many in the crypto industry. It is expected to facilitate a smoother transition to the new regulatory framework established by MiCA, which is seen as an important step towards the broader adoption of crypto assets in the European Union.

In conclusion, the AMF’s fast-track option for licensed crypto firms in France is a welcome development for the industry. The approach is designed to make it easier for firms to transition to the new regulatory framework established by MiCA and ensure compliance with the new rules in time for the end of the transitory period. As the European Union moves towards a consistent regulatory framework for crypto assets, the fast-track option is expected to facilitate the broader adoption of crypto assets in the region.