MiCA regulation is now a key focus as the French financial authority, known as the Autorité des Marchés Financiers (AMF), begins to accept applications from companies that want to provide crypto services. This action is to get ready for the MiCA regulation, which will start in December 2024. Starting on August 2, the AMF has been inviting firms to submit their applications to be recognized as authorized service providers under this new rule.
The AMF is taking an early step to help organize and secure the crypto market in Europe. By asking companies to apply early, the AMF is trying to make sure the transition into the new rules goes smoothly.
The MiCA Regulation aims to make the crypto market safer for consumers, ensure fair play, and increase openness in this fast-growing area.
This action is part of a broader European Union strategy to ensure that everyone involved in providing crypto asset services meets the high standards expected by the upcoming regulation. These standards include tough measures on anti-money laundering, cybersecurity, and governance. As TurkishNY Radio explains, starting from December 30, 2024, every crypto service provider in the European Union will need to have prior authorization under the MiCA Regulation.
MiCA Regulation Stricter Than French Law
The MiCA regulation is setting new, tougher standards for Digital Asset Service Providers (DASPs) that go beyond the current requirements under French laws. An AMF spokesperson emphasized the stringent nature of these upcoming regulations, noting that European legislators are raising the standards for obtaining MiCA authorization. This applies to both ‘enhanced’ and ‘simple’ DASP registrations. The move aims to tighten the regulatory framework and ensure a higher level of oversight and security in the crypto services sector.
According to the AMF spokesperson, this change reflects a significant shift towards more robust governance and accountability in the digital asset market. By introducing these stricter requirements, the MiCA regulation seeks to protect consumers and ensure the integrity of financial transactions in the crypto industry. The new rules are designed to establish a safer and more reliable market environment, encouraging responsible innovation and growth within the digital asset space.
The MiCA regulation applies to a wide array of services, such as the custody and administration of crypto assets, operating trading platforms, managing crypto exchanges, and providing financial advice and portfolio management. TurkishNY Radio points out that these detailed rules aim to make the crypto market in Europe safer and more regulated.
There is a transitional period that runs until June 30, 2026, during which existing crypto service providers in France can continue operating without needing a European passport. But to continue beyond this date, they must get authorization under the MiCA regulation. The French regulator encourages companies to start preparing early. They also suggest that potential applicants look into the detailed guidelines and schedules provided on their website. This is to help applicants understand what is required of them under the regulation.
Potential applicants get to know the important parts and specific obligations of the regulation. This knowledge will help ensure they are compliant and ready for the changes ahead.
The regulation is setting new standards for compliance in the crypto industry. As the date for its implementation approaches, the way crypto asset services operate in the EU will be greatly affected by these new regulations. The AMF’s decision to start accepting applications early shows the importance and urgency of meeting these new standards.
In conclusion, TurkishNY Radio emphasizes that the MiCA regulation is a major shift for the crypto industry in Europe. It enhances security, governance, and operational standards and ensures that all service providers work under a common set of rules. This move is crucial for maintaining the safety and stability of the financial market as digital finance continues to evolve. This approach by the MiCA regulation to a more regulated and secure market is a significant step forward for the industry.
As the deadline draws closer, TurkishNY Radio will continue to monitor and report on how the MiCA regulation is impacting the crypto service landscape in Europe.
