French authorities change the terms for obtaining a work permit for crypto companies

The French National Assembly has amended the law on cryptocurrencies, requiring crypto companies to obtain regulatory approval to operate in the country by January 1, 2024.

The French authorities have revised the policy of the simplified licensing regime for digital asset providers and have obliged all participants in the cryptocurrency market who were not previously registered with the country's financial regulator to be authorized and licensed by January next year.

Current French legislation allows companies to go through an easier registration process and not obtain permission, which requires a full series of checks on financial resources and business conditions.. For example, the Binance exchange and the financial conglomerate Societe Generale have registered as digital service providers, but neither of these large companies has yet been fully authorized by the local financial markets authority.

Previously, French senators proposed scheduling an October 2023 deadline for obtaining licenses to prevent crypto companies from abusing the forthcoming European Union Crypto Asset Market Regulation (MiCA) law.

However, the lower house of the French Parliament submitted an amendment to the legislators, giving new participants in the crypto industry and regulators more time to submit and process applications.. The proposal of the National Assembly must be approved by the Senate and receive the approval of the Assembly next week.

In December last year, a number of investors from France sued Binance, accusing the local division of the cryptocurrency exchange of fraud and violation of the law on advertising.