With six months remaining before the European MiCA Regulation’s provisions on crypto-asset services take effect, the Autorité des Marchés Financiers (AMF) has begun accepting applications for authorization to operate as a crypto-asset service provider. This authorization will be required from 1 July 2024.
MiCA Regulation Requires Authorization
The European MiCA Regulation will come into force on 30 December 2024, requiring all market participants who wish to offer crypto-asset services within the European Union to obtain prior authorization.
The regulation covers ten specific services: managing and safeguarding crypto-assets for clients; running a crypto-asset trading platform; converting crypto-assets to funds; swapping crypto-assets for other crypto-assets; executing orders for crypto-assets for clients; facilitating the placement of crypto-assets; handling and transmitting crypto-asset orders for clients; advising on crypto-assets; managing crypto-asset portfolios; and transferring crypto-assets for clients.
Providers will need to adhere to several common rules under MiCA, including anti-money laundering measures, cyber security requirements, and standards of conduct. Specific obligations will vary depending on the type of services provided.
Transition Period for MiCA
MiCA will replace France’s existing PACTE regime for new market participants from 30 December 2024. Providers already operating under a “simple” or “enhanced” registration or optional DASP authorization under the PACTE Law will have until 30 June 2026 to obtain MiCA authorization.
This transition period allows them to continue their activities until 1 July 2026. However, providers with “simple” or “enhanced” registrations, or optional authorizations, will not benefit from the European passport during this transition. They will need to ensure their services comply with regulations in other Member States during this period.
The MiCA authorization requirements are more stringent than the French regulations for “enhanced” and “simple” DASP registrations.
The AMF advises interested parties to begin preparations early to comply with the new European framework. For detailed information on the MiCA Regulation and guidance on application procedures, the AMF has published a new In-depth report on its website.
