On January 24, the future of the French cryptocurrency industry could be played out before the National Assembly. Indeed, MEPs will vote on an amendment tabled at the beginning of December which could make PSAN certification mandatory for French players.
For several weeks, an outcry has taken place against an amendment tabled by the senator of Eure, Hervé Maurey. This amendment which will be debated on January 24 by the National Assembly is the subject of particular attention.
Between amazement at the great disconnection of this text from the reality of the sector and fear of seeing the industry of crypto currencies in France, this amendment is definitively a major challenge at the start of the year.
While many personalities in the sector took the floor to oppose this amendment, two deputies were attentive to these remarks. Therefore, two additional proposals have been tabled to temper the inclinations of Mr. Maurey’s amendment. State of play of the situation.
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What is the purpose of the amendment tabled by Hervé Maurey?
Modifying the PACTE law of 2019, this amendment wishes strengthen the administrative procedures for obtaining PSAN status. In concrete terms, French companies wishing to provide assets to their customers must obtain regulatory authorization from the Autorité des Marchés Financiers (AMF): the PSAN.
Obtaining the PSAN can be obtained in two ways: registration or approval. In its version in force today, article L54-10-4 of the Monetary and Financial Code provides that the exercise of the profession of PSAN is prohibited to any person who has not been registered beforehand by the Autorité des financial markets.
In his amendment, Hervé Maurey wishes that, no later than October 1, 2023, persons wishing to practice as a PSAN and who are not registered must apply for certification. However, at present, no company on French territory has been able to obtain the famous sesame.
A great concern about the future of the French cryptocurrency industry
If this amendment were to be voted by the National Assembly, it is not clear whether French companies already registered, but not yet having obtained approval, will be able to continue to practice in France.
On the other hand, in the event that registered companies can continue to operate as a PSAN, a gigantic barrier to entry will be created for new players having to go through the accreditation procedure. Indeed, accreditation is a much more complicated obstacle to overcome than registration.
The impossible quest for PSAN certification
In the current state of affairs, Obtaining PSAN approval is almost impossible to obtain for the vast majority of players in the cryptocurrency industry.
Indeed, obtaining approval obliges companies to equip themselves with much greater human and financial resources. In addition, obtaining civil liability insurance would become mandatory for the latter. However, such insurance is not offered to entities offering services related to crypto currencies.
The MiCa Regulation in the crosshairs
While this amendment could profoundly slow down France’s competitiveness in the cryptocurrency sector, it is also confronted with the future MiCa regulation.
In fact, the MiCa regulation also provides for making PSAN certification compulsory, but by offering a two-year transition period from 2024. This deadline should allow all players to calmly anticipate this paradigm shift.
Consequently, Daniel Laboronne, MP for Indre-et-Loire, considers that this amendment would only have a limited effect since “if the objective is to prevent too many service providers from registering in France opportunistically in order to benefit from this system of tolerance, it should be remembered that it would suffice for service providers to register in another Member State to benefit from the same tolerance period”.
Concerns heard by two deputies
Daniel Laboronne and Eric Bothorel, French deputies from the Côtes-d’Armor, seem to have heard the concerns of the French players and have proposed solutions more likely to meet the needs of the sector.
In essence, their proposals provide only a tightening of the registration rules with, in particular, a strengthening of security measures, but also a obligation to separate customer funds from the company’s own funds or even the prohibition to use customer funds for one’s own account.
Unsurprisingly, the impact of the bankruptcy of FTX is felt in these proposals, but according to Faustine Fleuret, President of ADAN, ” these proposals go in the right directionboth to effectively protect the investor and to preserve the dynamics of innovation and business creation in France”.
From now on, these two proposals will come up against Hervé Maurey’s original amendment. It will be necessary remain attentive to the result of the vote of the National Assembly on January 24 to know more precisely the position of the French legislator on the cryptocurrency industry.
The article The future of the PSANs will be decided on January 24 appeared first on Corner Academy
