Francois Villeroy de Galhau – Governor of the Bank of France – believes that cryptocurrency companies must obtain stricter regulatory clearances to continue offering their services.
He also said that France should introduce stricter rules for domestic digital asset entities as soon as their legislation is ready rather than waiting for other European countries.
Villeroy’s latest recommendation
to me To the central bank governor, cryptocurrency entities must secure stricter licensing from supervisory bodies than incumbents due to the current “unstable environment”.
About 60 organizations, including Binance, have been registered by The Autorité des Marchés Financiers (AMF) to offer their products and services in the European country. However, no one has the license that Villeroy requires.
The ruler argued that the recent chaos in the cryptocurrency world, which has seen several bankruptcies, an outflow of investor interest, and a downturn in the market, is the main reason why France has rushed such changes:
The turmoil seen in 2022 is fueled by a fundamental belief: France should switch as soon as possible to compulsory authorization of DASPs (Digital Asset Providers) rather than simply requiring them to register. And this must happen before the MiCA goes into effect to create the necessary framework of trust.”
European Union agreed Market Regulation in Crypto Assets (MiCA) last October. The upcoming bill may establish a proper licensing regime for exchanges and other companies that would apply to all 27 members of the bloc.
It will focus specifically on combating tax evasion and money laundering and could come into effect in 2024.
There is not much time left
Villeroy has performed in the former urge European authorities must build a regulatory framework for cryptocurrencies as soon as possible, otherwise the old continent may lose its financial dominance while the euro may suffer a disadvantage:
“Whether it’s digital currencies or payments, we in Europe must be ready to act as quickly as we can or risk eroding our monetary sovereignty.”
He also said the EU had a year or two to introduce such legislation, otherwise the continent could “lose momentum”. Villeroy aired his thoughts in the summer of 2021, which means a potential number could come in the following months (assuming European observers take his recommendation into account).
The Governor of the Bank of France yet thinks crypto companies should follow stricter rules appeared first on CryptoPotato.