Governor François Villeroy de Galhau proposed that the current registration for cryptocurrency businesses should be replaced by a licence. The executive also emphasised that France should act before upcoming EU regulations come into effect and make French government licensing mandatory for digital asset service providers (DASPs).
At the time of writing, the French financial markets authority, the Autorité des Marchés Financiers (AMF), has registered about 60 companies that are involved in cryptocurrencies, including Binance. In the context of everything that has happened in the cryptocurrency sector in 2022, François Villeroy de Galhau urged France to move as quickly as possible to make DASP licencing mandatory.
According to royalsblue.com, digital asset service providers that are looking to obtain a licence are expected to adhere to certain standards as far as business conduct, available financial resources, and organisation are concerned.
The governor’s proposal also comes in the context of a new EU legislation for crypto asset markets (MiCA), which achieved consensus on a set of new anti-money laundering rules for the sector. In October 2022, The European Union has agreed on the legal text for licensed crypto firms by passing the landmark Markets in Crypto Asset regulation (MiCA).
In June 2022, the European Council and European Parliament reached a provisional agreement on MiCA, marking the first comprehensive EU stance on cryptocurrencies. Back in June, The move came a day after the European Council, European Parliament, and The European Securities and Markets Authority (ESMA) finalised measures aimed at decreasing money laundering in crypto.
France and Luxembourg central banks collaborate on a CBDC initiative
In December 2022, Banque de France and the Banque centrale du Luxembourg worked together on an experimental Central Bank Digital Currency (CBDC) initiative.
The two central banks assisted the European Investment Bank (EIB) in the Venus Initiative, which allowed them to use an experiential CBDC for a EUR 100 million bond. Aside from France and Luxembourg central banks, the Venus Initiative also involved Goldman Sachs, Santander, Societe Generale, and European Investment Bank (EIB). The EIB appointed Goldman Sachs Bank Europe SE, Santander, and Societe Generale to be in charge of issuing and distributing the digital native bonds.
Banque de France representatives cited by banque-france.fr emphasised how the Venus Initiative had brought both the France and Luxembourg central banks together and how it showcased a way to issue, distribute, and settle digital assets within the Eurozone, in a single day.