France’s financial markets regulator, the Autorité des marchés financiers (AMF), has started accepting applications for crypto asset service providers (CASPs). This move comes six months ahead of the Markets in Crypto-Assets (MiCA) regulations taking effect, marking a significant shift in the regulatory landscape for crypto firms operating in France and the broader European Union.
Early Transition to MiCA Regulations
Starting December 30, 2024, firms offering any of ten specified crypto-related services will need CASP authorization. This new requirement will impose standardized rules for Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), cybersecurity, and other business operations. The MiCA regulations, set to replace France’s existing PACTE regime, will require firms to transition by July 1, 2026. This change affects over 100 companies currently registered under the Digital Asset Service Provider (DASP) framework.
Notably, firms without CASP authorization will not receive a European “passport,” a provision under MiCA that allows businesses to operate across all EU member states. The AMF emphasized the stricter requirements under MiCA compared to French legislation and encouraged companies to start preparations early.
Preparation for MiCA Compliance
The AMF has been aligning French national regulations with MiCA standards since 2023, facilitating a smoother transition for DASPs to obtain CASP status. Some firms are already ahead of the curve. For instance, Circle, the issuer of USD Coin (USDC), announced in July that it had achieved MiCA compliance and would establish its European headquarters in France. Circle had previously secured DASP registration under PACTE.
Additionally, MiCA regulations specifically governing stablecoins came into effect on June 30, 2024. Cryptocurrency exchanges and other firms, including Cardano, have taken steps to comply with these new rules. The MiCA legislation, passed by the European Parliament in April 2023, aims to create a unified regulatory framework for digital assets across the EU.
