France to Hold Debate on Cryptocurrency Licensing: What Crypto Businesses Need to Know

France is poised to significantly alter its cryptocurrency landscape. In January 2025, the French Parliament will hold a debate regarding the potential repeal of favorable treatment for cryptocurrency firms. This comes amidst a global push towards stricter regulation and alignment with international standards.

Stricter Licensing Rules on the Horizon

France is on the verge of implementing a new law that will require all cryptocurrency-related businesses to obtain a license to operate in the country. The French National Assembly has already voted in favor of legislating stricter licensing rules for new cryptocurrency firms in order to harmonize local laws with proposed European regulations.

Impact on Crypto Companies in France

The proposed changes will have a substantial impact on crypto companies operating within France. As of 202X (expected date following the 2025 debate), Crypto companies in France would have to follow extra conflict of interest and consumer protection rules. This signals a shift towards greater oversight and accountability within the crypto sector.

Harmonization with MiCA and Consumer Protection

French lawmakers have voted to make it mandatory for bitcoin (BTC)-linked businesses in France to abide by strict consumer protection rules and comply with the statutes of the incoming MiCA (Markets in Crypto-Assets) regulation. This alignment with MiCA is a key driver behind the legislative changes, ensuring a more consistent and secure environment for crypto investors and users.

What to Expect from the Debate

The upcoming debate in January 2025 will be crucial in shaping the final form of the legislation. Key issues likely to be discussed include the scope of the licensing requirements, the specific consumer protection rules that will be enforced, and the timeline for implementation. Stay tuned for updates as the debate unfolds and the future of cryptocurrency regulation in France becomes clearer.