On August 10, 2023, French securities regulator Autorité des marchés financiers (AMF) published a press release announcing amendments to Book VII of its General Regulation as it relates to digital assets service providers (DASPs) to be consistent with the enhanced registration requirements introduced by the DDADUE Law. These amendments to the AMF General Regulation are also intended to align the requirements for DASP licensing with cryptoasset service provider authorization under the European Union's Markets in Crypto-Assets Regulation (MiCA).
Under the new regime, all DASPs seeking licensing will be evaluated on the following dimensions currently used to evaluate DASPs seeking “enhanced” registration: security and internal control management, conflicts of interest management, information accuracy, public pricing policies, custody provisions (i.e., segregation of client and own assets), information technology systems, and prohibitions on using client assets without prior express consent.
These AMF General Regulation amendments will apply to licenses issued on or after January 1, 2024. DASPs that obtained a simple registration prior to that date will continue to be subject to the previous regulatory framework.
Cryptoassets will likely be subject to greater scrutiny and regulatory enforcement in the near future as more country-level regulators amend their rules in anticipation of the European Union's transition to MiCA. Winston & Strawn's multijurisdictional Digital Assets & Blockchain Technology Group will continue to monitor developments and provide clients and friends of the firm with updates as they become available. Please contact your Winston relationship partner to discuss European regulations and licensing requirements.
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