French Central Bank Governor Advocating for Strict Crypto Licensing
- Governor Villeroy urges France to enforce mandatory crypto licensing now, rather than waiting for EU's MiCA regulation, to address market uncertainty.
- Current French rules allow crypto firms to operate unlicensed until 2026, but a push for stricter DASP licensing is gaining momentum in France.
- Villeroy's call for tighter crypto regulations in France reflects growing concerns about market stability and the need for early adoption of EU MiCA rules.
The governor of the Bank of France has called for more strict
The governor of the Bank of France has called for more strict
Licensing rules for crypto firms in France, citing the present market uncertainty.
Francois Villeroy de Galhau said in a speech in Paris on January 5 that France should not wait for upcoming EU crypto rules to establish mandatory licensing for local digital asset service providers (DASPs).
The European Parliament's Markets in Crypto Assets bill (MiCA), which establishes a crypto-licensing scheme, isn't expected to come into effect until 2024.
As per a Bloomberg report from January 5, Villeroy addressed the country's financial industry in his speech, stating:
“All of the uncertainty in 2022 feeds a simple belief: it is better for France to move to mandatory DASP license as soon as possible, rather than just registration.”
Currently, crypto firms that offer crypto trading and custody must be "registered" with the country's market regulator, the Financial Markets Authority (AMF).
Villeroy's call comes after Senate finance panel member Hervé Maurey suggested an amendment in December to remove a section that allows companies to operate without a license.
Current French rules allow companies to operate unlicensed until 2026, regardless of whether or not MiCA becomes legislation and implements a licensing framework.
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