AMF Adopts an Optional Legal Framework for Crypto-Assets in France
AMF, the French Financial Markets Authority, adopted a legal framework to oversee initial coin offerings (ICOs) and digital asset service providers (DASPs) in France. The PACTE draft Bill (Action Plan for Business Growth and Transformation) was adopted in the French National Assembly on April 11, 2019. Once enacted, the law will establish a framework for fundraising via the issuance of virtual tokens (ICO) and DASPs.
The regime covers digital assets not classified as financial instruments, giving rise to one or more rights and that may be issued, registered, stored, or transferred using a distributed ledger technology (or a blockchain). The law will enable project initiators to submit their information document to AMF for an optional visa, which will be issued on the condition that they meet certain requirements. The visa remains optional and the raising of funds without AMF visa will continue to be legal in France. However, issuers who have not received the AMF visa will not be able to use general solicitation. AMF will publish the list of ICOs that have received its visa. DASPs may be licensed and placed under the supervision of AMF. The term “digital assets” comprises tokens issued during ICOs and virtual currencies as defined by European law (such as the bitcoin). Financial instruments are excluded from this regime. This new optional status will cover a wide range of activities, particularly:
- Custody of digital assets for third parties
- Purchase or sale of digital assets against legal tender or other digital assets (broker/dealer)
- Operation of a digital assets trading platform (stock exchange)
- Other digital asset services such as the reception and transmission of third-party orders, third-party portfolio management, advice, underwriting, and placing on or without a firm commitment basis
Whether or not they choose to obtain the optional license, service providers that wish to provide digital assets custody services to third parties or to purchase/sell digital assets in exchange for legal tender are subject to mandatory registration with AMF. AMF may publish a “blacklist” of ICOs and digital assets services providers that do not comply with the regulations. It may also block access to fraudulent websites offering services in digital assets.
Related Link: Crypto-Assets Regime in France
Keywords: Europe, EU, France, Banking, Securities, Regtech, Fintech, Crypto-Assets, Distributed Ledger Technology, Blockchain, AMF
Previous ArticleFSB Outlines and Reprioritizes Its Work to Address COVID-19 Risks
FINMA Approves Merger of Credit Suisse and UBS
The Swiss Financial Market Supervisory Authority (FINMA) has approved the takeover of Credit Suisse by UBS.
BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks
The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.
OSFI Finalizes on Climate Risk Guideline, Issues Other Updates
The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.
APRA Assesses Macro-Prudential Policy Settings, Issues Other Updates
The Australian Prudential Regulation Authority (APRA) published an information paper that assesses its macro-prudential policy settings aimed at promoting stability at a systemic level.
BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending
BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.
HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks
The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.
MFSA Sets Out Supervisory Priorities, Issues Reporting Updates
The Malta Financial Services Authority (MFSA) outlined its supervisory priorities for 2023
German Regulators Issue Multiple Reporting Updates for Banks
Deutsche Bundesbank published the nationally deactivated validation rules for the German Commercial Code (HGB) users on the taxonomy 3.2, which became valid from December 31, 2022
BCBS Report Examines Impact of Basel III Framework for Banks
The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.
PRA Consults on Prudential Rules for "Simpler-Regime" Firms
Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.