France to Tighten Crypto Registration Rules Next January

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France to Tighten Crypto Registration Rules Next January
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Lawmakers at France's AssembleeNat and Senat have now all but agreed on how to tighten up crypto registration in the wake of the FTX_Official collapse. jackschickler reports.

by a committee of lawmakers from both chambers of parliament, but not as much as initially sought by the Senate, the country's upper house.

Newly applying companies will have to meet extra rules on internal controls, cybersecurity and conflicts of interest, the text from the Joint Committee said. That's less onerous than a previous Senate position that would have required companies to seek a license. The text agreed on by the special legislative committee is due to be approved by the Senate on Feb. 16 and the National Assembly on Feb. 28.

Under French crypto regulations, companies can register with the Financial Markets Authority to show compliance with basic money-laundering and governance norms. No operator has yet received a license, a more burdensome procedure that also requires checks on financial resources and business conduct. Faustine Fleuret, president of crypto lobby group ADAN, told CoinDesk the enhanced registration procedure was a “much more pragmatic approach” than the Senate's. But, she warned, a new requirement to have resilient and secure IT systems could prove difficult for small companies to meet and for regulators to police.

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