Just a few months after establishing preliminary regulations for Initial Coin Offerings (ICOs), the French government is contemplating additional framework for cryptocurrency-related intermediaries.
According to the Mondaq, the new regulations would require all fiat-to-cryptocurrency exchanges and custodians of cryptographic keys to fill for a mandatory AMF registration. AMF, Autorité des marchés financiers, is the independent public body that acts as the stock market regular in France. It is responsible for safeguarding investments in financial instruments and in all savings and investment as well as maintaining orderly financial markets. The new regulations would put cryptocurrency under the jurisdiction of AMF and force the intermediaries to register before offering any services.
Unregistered intermediaries are predicted to pay EUR 30,000 and receive a maximum two years jail sentence. The amendment would give previously established entities 12 months to register from the time the new regulations go into effect.
The proposed regulatory framework broadly defines crypto-assets. By the proposed definition, it would include tokens “held and transferred on a distributed ledger” and “digitally registered and transferred asset incorporating nonmonetary units of value that can be transferred for acquiring goods and services”.
While the cryptocurrency has the habit of fearing regulation, not all regulation is set to destroy the industry. This regulatory strategy is intended to put an “emphasis on nonmandatory provisions to foster professionalization and promote sound market practice while avoiding constraining frameworks that might deter innovation and diminish the French market’s attractiveness”. France hopes to be a trailblazer nation in establishing the appropriate regulatory framework for the cryptocurrency industry to succeed.
To read more about the proposed framework, click here.