France’s financial markets regulator, the Autorité des marchés financiers (AMF), has commenced accepting applications for crypto asset service providers (CASPs) in anticipation of the upcoming Markets in Crypto-Assets (MiCA) regulations. This proactive move comes six months before MiCA legislation is set to come into effect. Starting December 30, firms offering any of the ten crypto-related services will need to secure CASP authorization. This new requirement aims to standardize rules concerning Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), cybersecurity, and other business operations.
France Ahead of the Curve in Crypto Regulation
The MiCA regulations will supplant France’s current PACTE (Action Plan for Business Growth and Transformation) regime. Companies currently operating under PACTE or those not previously regulated will have until July 1, 2026, to transition to CASP authorization. Over 100 firms fall into this category. These companies will not be able to obtain a European “passport” to operate across other EU countries until they achieve CASP authorization. Under MiCA, authorization in one EU country grants the firm the right to operate in all member states.
The AMF highlighted the stringent nature of MiCA requirements compared to French legislation, urging firms to prepare early. The regulator has been aligning national rules with MiCA standards and formulating strategies to facilitate the transition of digital asset service providers (DASPs) to CASP status.
The Industry’s Response to MiCA Regulations
Many crypto firms are already taking steps to comply with the forthcoming MiCA regulations. For instance, USD Coin (USDC) issuer Circle announced in July that it had achieved MiCA compliance and would establish its European headquarters in France. Circle was already registered as a DASP. MiCA regulations concerning stablecoins took effect on June 30, prompting cryptocurrency exchanges to adapt to the new rules. Cardano has also confirmed its compliance with MiCA regulations.
The European Parliament passed the MiCA legislation in April 2023, marking a significant milestone for the crypto industry.
Implications for the Future of Crypto in Europe
The AMF’s early adoption of MiCA standards reflects a broader trend of increasing regulatory scrutiny in the crypto industry. As Europe moves towards a more unified regulatory framework, firms will need to adapt to more stringent requirements. This could lead to increased operational costs but also greater investor confidence and market stability.
The transition period until July 2026 provides a window for firms to align their operations with the new regulations. However, the lack of a European passport until CASP authorization could limit the ability of some firms to expand across the EU.
A Pivotal Moment for Crypto Regulations
The implementation of MiCA is being viewed as a pivotal moment for crypto regulations in Europe. The new framework aims to create a more secure and transparent environment for crypto transactions, thereby fostering greater trust among investors and regulators alike. With firms like Circle and Cardano already achieving compliance, the industry is showing signs of readiness for this regulatory shift.
The Road Ahead
As the July 2026 deadline approaches, more firms will likely accelerate their efforts to comply with MiCA regulations. The AMF’s proactive stance serves as a model for other European regulators, emphasizing the importance of early preparation and compliance. The next few years will be crucial for the crypto industry as it navigates this complex regulatory landscape.
In conclusion, the AMF’s acceptance of CASP applications ahead of the MiCA rollout marks a significant step towards a more regulated and secure crypto market in Europe. Firms that take early action to comply with these new regulations will be better positioned to thrive in this evolving landscape.
