France opened its doors to applications from crypto asset service providers (CASP) for licenses.
In a post on 2 August 2024, the Autorité des Marchés Financiers (AMF), the French markets regulator, announced the acceptance of CASP license applications.
The move comes as the EU gears up to implement the Markets in Crypto Assets (MiCA) regulations by the end of 2024.The French financial watchdog highlighted ten crucial aspects of the legislation that will come into force in December 2024.
However, in response to regulatory developments, crypto exchange Bybit has withdrawn its application from France.
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Bybit Withdraws From France
Amid the recent regulatory developments, crypto exchange Bybit made the decision to cease its operations in France, citing changes in French regulations as the reason behind its withdrawal.
“In light of recent regulatory developments from the French regulator, Bybit will stop offering our products and services to French nationals and residents,” the company said in a statement.
Bybit withdraws from French market in response to regulatory developmentshttps://t.co/B7AQEeQvvm
— DL News (@DLNewsInfo) August 3, 2024
From August 2024, French users will no longer be able to engage with Bybit’s products and services. Deposits to French accounts will also be restricted.
In May 2024, the AMF said that Bybit had been blacklisted since 2022 due to its lack of authorization to provide digital asset services in the country. “Bybit is not authorised to provide its digital asset services in France,” the regulator said.
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MiCA Will Replace France’s Existing PACTE Framework
France has been relatively welcoming to crypto companies, boasting 74 registered entities under its own regulatory framework. Meanwhile, major EU economies like Germany, Italy, and Spain are yet to make announcements regarding this process.
The MiCA regulations are set to replace France’s existing PACTE (Action Plan for Business Growth and Transformation) framework.
Entities that previously held authorization as digital asset service providers under PACTE now have until July 2026 to shift to CASP authorization.
“The requirements set by the European legislators for MiCA authorisation are more stringent than those stipulated in the French legislation,” the AMF wrote. “The AMF therefore encourages interested parties to prepare as early as possible.”
Notably, the EU’s MiCA framework related to stablecoins took effect in June 2024. Under the new rules, companies must stop issuing non-euro-denominated stablecoins used as a “means of exchange” if they cross a threshold of more than 1 million transactions or a value of over 200 million euros (US$215.2 million) per day.
In line with these regulations, stablecoin issuer Circle announced registering as an electronic money institution (EMI) in France. This granted Circle a license to become a compliant stablecoin issuer under the EU’s new crypto laws.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
