French Regulator Allows Crypto Firms to Apply for Licenses

Asia Blockchain Review
January 8, 2020

The Autorité des Marchés Financiers (AMF) or Financial Markets Authority in France announced it now allows crypto firms to apply for non-mandatory licenses to provide digital asset services in the country.

Regulating Digital Assets in France

According to Coindesk, the AMF has released new rules on licenses for digital asset service providers (DASPs). Moreover, it has published guidelines for companies applying for the license including details on recommended internal cybersecurity practices.

The recently-published rules and guidelines have been released in line with the PACTE law in France, which was among the first few crypto legislative packages passed in Europe. 

The French regulator stated that for each DASP applying for the license, the firm is required to submit several documents to the AMF such as a two-year business plan, a list of digital assets that the company will offer services for, and the firm’s organizational structure. 

Meanwhile, to be granted a license, DASPs must possess professional indemnity insurance, reliable IT systems, a claims handling procedure and an internal control system, among other requirements set by the AMF.

Keeping Tabs on Crypto Firms

Though the license is not mandatory for crypto firms in France, the French regulator has requested that firms providing crypto-to-fiat or fiat-to-crypto services register with the AMF as a precaution against money laundering and terrorist financing activities.

Hubert de Vauplane, a partner at law firm Kramer Levin Naftalis & Frankel, said the initiative is the first time the French regulator has issued clear guidelines for crypto firms.

“To the best of my knowledge it’s the first time we’ve seen precisely how a custodian has to maintain the key to assets on blockchain, and what is the role and liability of the custodian,” de Vauplane said. 


About Asia Blockchain Review

Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.

Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.

Follow Asia Blockchain Review on:

    Related Article
    Blockchain Enables Verification of COVID-19 Immunity
    Given the virus is not going to disappear in a hurry and we are some time away from vaccinating the ...

    November 21, 2020

    Illicit Cryptocurrency Activity: A Concern
    Market regulators such as SEC has accepted cryptocurrencies as a financial instrument and are consta...

    November 20, 2020

    IBM Using Blockchain to Help Businesses Reopen during COVID-19
    IBM’s healthcare unit, IBM Watson recently announced that they will soon be launching an app to supp...

    November 20, 2020

    Canadian Pacific Railway Collaborates with TradeLens
    Canadian Pacific Railway recently collaborated with TradeLens in a bid to improve its efficacy as an...

    November 19, 2020

    We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us