Cryptocurrency: More controlled PSANs in the future, but the industry is relieved

The deputies adopted on Tuesday, January 24, new regulations on the registration of future candidates for the PSAN regime.

The French crypto and Web3 sector feared a punitive amendment, synonymous with the obligation to approve new candidates in the AMF who wish to practice on our soil, as demanded by Senator Herve Moret (Centrist Union). Finally, the public meeting of the National Assembly on Tuesday, January 24 ended in a milder outcome for the industry. Indeed, MP Daniel Labaron (Renaissance)’s amendment to article 5 bis of bill no. the obligation to provide information about the risks associated with the acquisition of crypto assets.

The amendment requires future PSANs to deposit client funds with a central bank or lending institution.

The text also requires that future PSANs notify the AMF of any changes made to their governing body and all information necessary to assess whether adequate measures have been taken to protect the property rights of clients, especially in the event of insolvency. First of all, this amendment requires that they place their clients’ funds with a central bank or lending institution, and that they be held in identifiable accounts and separated from the providers’ own funds. Finally, the text requires platforms to have the means to handle complaints from their customers quickly and free of charge, as well as a policy to prevent the risk of conflicts of interest.

In addition, the government has added a subamendment aimed at authorizing it to take any action to adapt French legislation to the rules provided for by the future European MiCA regulation. Many of the provisions of the amendment introduced by MP Daniel Labaron, in particular the placement of customer funds in banking institutions and segregated accounts, are indeed already provided for in the European text.

“The Covenant Law, passed in 2018, created a safety net for savers and promotes innovation, a regulation that is a real success. The amendment proposed by the speaker is even more defensive, more demanding. The government proposes regulation by acting in order. update France’s approval after the Commission provides details of the EU approval”, welcomed Minister Delegate for Digital Transition Jean-Noel Barraud, who did not convince LFI deputy Hugo Bernalisis: “The risk is unchanged in this new economy that blockchain with crypto assets , which also includes many different products, including NFTs, which we know to be the new scam of the century!”

“We must remain vigilant, but we are glad that we have avoided the worst”

Despite expressed opposition, the amendment and sub-amendment were passed by the National Assembly. After final passage in the Senate and publication in the Official Journal, the text will enter into force for new candidates from January 1, 2024.

A relatively satisfactory result for ADAN, an association of industry lobbyists: “We avoided the worst, it’s more of a pragmatic decision to avoid mandatory certification,” said Faustine Fleur, president and CEO of the organization. “The improved registration solution is more efficient. We are gradually strengthening the supervision of entities based on European regulations, not Franco-French ones. We still have a small flaw that should be noted as “it is possible that the file is re-opened within twelve months, I mean the subamendment submitted by the government, it is a kind of sword of Damocles. We must remain vigilant, but we congratulate ourselves on avoiding the worst.”

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