France is considering enacting the country’s very first regulatory framework governing crypto-asset intermediaries. The move will require fiat-to-cryptocurrency exchanges as well as custodians of cryptographic keys to undergo a mandatory AMF registration.
Getting Serious About Cryptocurrencies
France is one of the more active members of the European Union when it comes to cryptocurrency regulations. The country introduced its own regulations governing the field of initial coin offerings (ICOs) earlier in September and is now reportedly considering an amendment which would put cryptocurrency exchanges and other entities in the field under the legislative purview of its financial watchdog.
It’s also important to note that the proposed amendment sets forth a fairly broad definition of the term “crypto-asset”. According to it, this is an intangible digital asset which incorporates rights and can be issued, registered, held, as well as transferred on a distributed ledger while not being qualified as a financial instrument. Additionally, the amendment also covers “any digitally registered and transferred asset incorporating nonmonetary units of value that can be transferred for acquiring goods or services.”
Mandatory AMF Registration
Under the draft regulations, intermediaries which hold cryptographic keys in custody, as well as cryptocurrency-to-fiat exchanges will need to undergo an AMF registration prior to offering any services. The AMF is France’s financial watchdog and it will be responsible for publishing a list of registered and approved service providers.
The new framework also comes with hefty fines for those who fail to comply. Unregistered providers will be subjected to a fine of EUR 30,000 and up to two years of imprisonment.
On the matter of dealing with already established entities, the amendment allows them 12 months from the date of the publication to register with the AMF.
Earlier this year, Bitcoinist reported that the country slashed cryptocurrency taxes in half.
What do you think of France’s move to regulate cryptocurrency exchanges and other crypto-asset service providers? Let us know in the comments below!