2023 is a pivotal year for the digital asset sector in France, as it introduces a new registration regime for digital asset service providers (PSAN). A reinforced registration system with stricter requirements will be in place for providers from January 1, 2024, but PSANs planning to submit a registration application must prepare for these new requirements starting July 1, 2023.
Law No. 2023-171 of March 9, 2023 reforms the regime applicable to PSANs registered with the Autorité des Marchés Financiers (AMF), considering the upcoming European regulation on crypto-asset markets (MiCA), which proposes harmonization of regulation applicable to crypto-asset services in European Union member states.
New requirements for submitting a complete application from July 1, 2023, include: (i) having an adequate security and internal control systems, a conflict of interest management system, and a resilient and secure IT system; (ii) providing clear, accurate, and non-misleading information to clients; (iii) publishing their pricing policy; and (iv) implementing a complaint handling policy. Custody service providers must also comply with additional provisions specific to their activity.
Before July 1, 2023, the AMF will accept registration applications under the current regime, provided they are complete. Applications that are not exhaustively responsive to the current regulatory expectations will be treated under the reinforced regime and must be completed to meet additional requirements.
After July 1, 2023, the AMF will continue to register PSANs that have submitted a complete application before that date, under the initial registration regime. Then, from the end of 2024, digital asset service providers must comply with the European MiCA regulation, which will replace the French regime. Digital asset service providers must be well-informed about these changes and prepare in time to comply with European regulations. PSANs registered (under the reinforced or initial regime) and approved by the AMF before MiCA regulation comes into force will benefit from an 18-month grace period to comply with the European framework.
Stakeholders are recommended to take necessary measures to comply with MiCA requirements before its definitive application. Actors mentioned in Article L. 54-10-2 5° of the Monetary and Financial Code, who are not subject to mandatory registration, must obtain CASP approval if they wish to operate in Europe.
