With the European MiCA Regulation’s provisions on crypto-asset services coming into force, the Autorité des Marchés Financiers (AMF) has begun accepting applications for authorization to become a crypto-asset service provider.
Starting July 1, 2024, firms offering any of ten specified crypto-related services must secure CASP authorization, which will enforce uniform rules for anti-money laundering (AML), countering the financing of terrorism (CFT), cybersecurity, and other business aspects.
From December 30, 2024, market participants wishing to offer crypto-asset services in the European Union will need prior authorization under the MiCA Regulation.
AMF has outlined ten key aspects of the legislation starting December 30. These include providing custody and administration of crypto-assets for clients, operating a crypto-asset trading platform, exchanging crypto-assets for funds or other crypto-assets, executing crypto-asset orders for clients, placing crypto-assets, receiving and transmitting orders for crypto-assets on behalf of clients, providing advice on crypto-assets, managing crypto-asset portfolios, and offering crypto-asset transfer services for clients.
The AMF has been supportive of crypto companies, having already registered 74 firms under its regime by May last year.
According to the official statement, service providers must adhere to common rules, such as AML and CFT requirements, cybersecurity obligations, maintaining good repute and competence, governance, managing conflicts of interest, and, where applicable, custody of funds and asset segregation.
MiCA will replace France’s existing PACTE regime for market participants launching businesses on or after December 30, 2024. Providers already offering digital asset services in France through ‘simple’ or ‘enhanced’ registration as digital asset service providers (DASPs) or via an optional DASP authorization under the PACTE Law will benefit from a transition period.
These providers, and those offering services not currently subject to mandatory registration, such as Financial Investment Advisors (FIAs) providing crypto-asset advice, have until June 30, 2026, to obtain MiCA authorization to continue their activities beyond July 1, 2026.
The EU’s Markets in Crypto Assets regulation (MiCA) became law in 2023, establishing licensing requirements for crypto issuers and service providers, including exchange platforms. MiCA’s stablecoin rules came into effect in June.
MiCA’s stablecoin rules came into effect last month and it has created quite an uproar in the crypto space.
The rules ban algorithmic stablecoins and require fiat-backed stablecoins to be backed by a liquid reserve that has a 1:1 ratio. It further mandates issuers to establish and maintain a reserve of assets insulated from other assets and held in custody by a third party. In June, leading crypto exchange, Binance stated that it is dividing stablecoins into “regulated” and unauthorized” coins to comply with the new rules.
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