French authorities propose to abolish simplified VASP licensing regime

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French lawmakers have proposedamend the legislation according to which all virtual asset service providers (VASP) will be required to be licensed by regulatory authorities.

Member of the Senate Finance Committee Hervé Moret(Hervé Maurey) proposed to exclude from French laws the provision allowing cryptocurrency companies to operate under a simplified license until 2026. This opportunity will be available to crypto companies even after the EU Cryptocurrency Regulation Bill (MiCA) comes into force in 2024. Moret's proposal implies that from October 2023, companies dealing with crypto assets will be required to obtain a license from the French Financial Markets Authority (AMF).

The senator said that due to the collapse of the FTX exchange,Many legislators have come to the conclusion that it is necessary to more strictly regulate the cryptocurrency market. Even though France is trying to become a cryptocurrency-friendly jurisdiction. There are currently at least 50 cryptocurrency companies operating in the country that do not have an AMF license, the politician added. 

Former AMF board member Thierry Philipponnat agreed with Moret, saying that the current simplified regime for VASPs is not aimed at protecting the rights of investors.

On Tuesday, December 13th, Mora's offerreceived the approval of colleagues in the Senate and will be considered by Parliament in January 2023. However, local industry association Developing the French Digital Asset Industry (Adan) said that if Moret's initiative were to become law, it would mean French authorities were abandoning the innovative industry of the future.

Previously Binance CEO Changpeng Zhao(Changpeng Zhao) called France one of the most advanced countries in developing legislation for cryptocurrencies. In October, Crypto.com opened its headquarters in Paris to strengthen its presence in Europe;