French regulator imposes cybersecurity rules for crypto firms
The French financial regulator, the Autorité des marchés financiers (AMF), has announced changes to its rules governing digital asset service providers (DASPs) in France. The amendments aim to incorporate upcoming European Union regulations on crypto-assets while enhancing registration requirements for crypto service providers.
From January 2024, DASPs seeking registration will face mandatory enhanced requirements including implementing cybersecurity and internal control systems. Existing registered DASPs are grandfathered under the old rules.
The AMF has aligned its licensing rules with the European Markets in Crypto-Assets (MiCA) regulation, enabling licensed French DASPs to readily become MiCA-compliant crypto-asset service providers (CASPs).
AMF states the rule changes will facilitate a smooth transition to MiCA oversight when the EU-wide framework takes effect in 2024. Aligning French rules with MiCA aims to support innovation and growth of crypto-asset services under harmonized European regulations.
The regulator has provided updated guidance for license applications and cybersecurity rules. AMF emphasized its amendments balance enhancing consumer protections while supporting development of crypto-asset markets.
