French regulator Autorite des Marches Financiers (AMF) has said that the country will support MiCA, a cryptocurrency bill that will be implemented across Europe. The MiCA, which has just been approved and will be valid throughout the EU, excludes some crypto sectors.
French regulators welcome MiCA
cryptocoin.com As we have reported, the MiCA bill to be implemented across the EU was officially approved on 20 April. With the new regulation, European policymakers aim to create harmonized rules for cryptocurrencies at the European Union level. The regulation will provide guidelines for the production, structure and management of cryptocurrencies. It will also set transparency and disclosure requirements for generating and trading crypto.
Announcing Friday, the French regulator AMF welcomed the new bill. AMF said, “This regulation will create a harmonized framework in Europe. Thus, it will help increase the competitiveness of French and European players by providing better protection for investors.”
France already has cryptocurrency regulations that divide companies into two tiers. First, all firms are required to obtain ‘first level’ registration. However, companies that want to can go to the higher registers for more money flow. The obligations that companies will face under MiCA will be similar to the advanced form of authorization.
The AMF said it will explore a possible “fast track” for listed exchanges, as part of the transition from local regulation to Europe-wide rules. The regulator also states that it will ensure that its general regulations are adapted to facilitate the transition to MiCA.
MiCA has not touched these sectors yet
The EU’s final step towards crypto regulations addresses issues such as crypto companies and investor security. On the other hand, there are some criticisms regarding the draft regulation. The draft does not contain any provisions regarding DeFi in general. Also, no specific rules are recommended for the growing crypto lending and staking industries. Finally, no regulation is foreseen for NFTs either.
In terms of DeFi, the industry in which high-volume altcoins operate such as Uniswap (UNI), Aave (AAVE), Compound (COMP), MakerDAO (MKR), and Curve Finance (CRV) is yet to be regulated. In addition, the NFT setter, which includes collections such as CryptoPunks, Axie Infinity, Bored Ape Yacht Club, Art Blocks and Pudgy Penguins, is not included in any rules in MiCA.
When will the EU’s cryptocurrency law MiCA come into effect?
MiCA will enter into force in July after receiving the approval of the Council of Europe. The effective date of the new laws has been determined as 2025. Although the MiCA law will come into effect this year, it will begin to be implemented in 2025. Therefore, new entrants released in 2024 or later are required to obtain a full license.
