• French officials have offered a welcome to crypto companies fleeing U.S. regulatory uncertainty, boasting of a relativelty predictable regulatory framework for crypto companies.
• The EU has recently passed the Markets in Crypto Assets rules that will be implemented in 2025 and France is already home to around 74 registered crypto companies.
• Although there is legal certainty in France, there are still some gray areas pertaining to regulating financial services with no central entity and how social media influencers should be able to promote crypto products.
Fleeing U.S. Crypto Firms ‘Welcome’ In France
French regulators have offered a warm welcome to crypto firms seeking refuge from the uncertain U.S regulatory environment.
Regulatory Framework Offers Predictability
The country already has around 74 registered crypto companies – which could soon surge as firms seek out the new European Union Markets in Crypto Assets rules (MiCA) that were signed off by ministers earlier this week.
„In France, we are proud to be pioneers“ with the 2019-adopted crypto service asset provider (PSAN) regime, said Benoît de Juvigny, Secretary General of the Autorité des marchés financiers (AMF). He added: “If American players want to benefit from the French regime, and from the start of 2025 from European arrangements, clearly they are welcome.“
Gray Areas Remain
Despite legal certainty being achieved in France, there remain some gray areas such as what kinds of crypto social media influencers should be able to promote.
EU regulations on how to regulate financial services without central entities is also yet to be decided upon; however an AMF paper offering ideas on this subject will be released in coming weeks.
U.S Regulatory Uncertainty Reaches Crisis Point
In recent weeks many players including Bittrex and Coinbase have exited or threatened exit of the US due to active enforcement combined with no prospect of a clear cut law emerging from Washington regarding cryptocurrency.