Stricter Crypto Licensing Needed in France: Bank of France Governor

• The governor of France’s central bank, Francois Villeroy de Galhau, has advocated for stricter crypto licensing requirements.
• Currently, full Digital Asset Service Provider (DASP) licensing is optional, but around 60 companies have obtained a less extensive „registration“ from the Financial Markets Authority (AMF).
• In December, Senator Hervé Maurey proposed an amendment that would do away with the „registration“ option, citing the collapse of FTX as a reason for stricter regulations.

The governor of the Bank of France, Francois Villeroy de Galhau, recently advocated for stricter crypto licensing requirements during a speech in Paris. The governor believes that France should move toward an obligatory licensing of Digital Asset Service Providers (DASP) as soon as possible, instead of relying on the current registration system.

Currently, full DASP licensing is optional in France. However, around 60 companies have obtained a less extensive „registration“ from the Financial Markets Authority (AMF). One of the companies that has registered with the AMF is Binance, which received permission to operate in France last May.

In December, Senator Hervé Maurey proposed an amendment that would do away with the „registration“ option. Maurey cited the collapse of FTX as one reason for stricter regulations, calling the event a moment of „reckoning and awareness.“ Maurey’s proposed amendment would require companies to obtain a full license in order to operate in France.

The governor of the Bank of France believes that France should move toward full licensing sooner rather than later. This would ensure that crypto companies are operating under regulatory guidelines and provide more protection to investors. However, there is no indication of when the proposed amendment may be implemented. Until then, investors should exercise caution when dealing with any crypto companies that are not fully licensed.