France wants to “make Paris the capital of innovation”

“MiCA is a unique opportunity to impose France on the global cryptocurrency landscape and to strengthen the place of Paris”. At the end of a conference dedicated to the challenges of European regulation in the field of blockchain and crypto-assets for the securities industry, organized by the French Association of Securities Professionals (AFTI), the Deputy Director of Corporate Finance and the Financial Market to the general Treasury Director Pierre Chabrol was very clear on France’s ambitions.

a regulation partly inspired by France

The MiCA regulation (Cryptocurrency markets), currently under discussion in the European Parliament, must regulate cryptocurrencies at the EU level. It has three main objectives: to regulate market players by creating a European Statute of Digital Asset Providers (PSAN), to protect investors and ensure financial and monetary stability, and to combat money laundering. Its entry into force is currently estimated to be between late 2023 and early 2024.

Pierre Chabrol summed up the French position with a subtle balance between the “affirmed support for innovation”, risk management and the implementation of fair competition between the players in the sector. The fact that the French legislation inspired this European text “international pioneer“, particularly on PSAN status, is, according to the senior official, an opportunity to increase the attractiveness of the Parisian financial services market.

exploit the “pilot regime” to start experiments

The other regulation being adopted at European level, the “pilot scheme for blockchain-based market infrastructures”, is the second lever on which France is counting to enhance its ecosystem. This text, which aims to create a transitional regulatory framework aimed at testing the use of blockchain technologies in market infrastructures, is expected to come into effect at the end of 2022. It is complementary to the MICA, which excludes decentralized finance from its scope.

“France fought hard to get the pilot scheme“, Pierre Chabrol specified. “It is interesting to have this possibility to start experiments, which can reach a level of industrial development, in a safe framework. This is a fairly crucial phase. We are ready to support interested actors in the development of projects. We can derive a substantial comparative advantage from They”He explained.

resources to establish itself

After Brexit, France spared no effort to attract capital and finance companies. “Several tens of billions of euros have been repatriated to Paris”noted the deputy director of DGT, who wishes “making Paris the capital of innovation in the cryptocurrency sector and decentralized finance”.

For this he relies “the existence of a talent pool” in mathematics and quantitative finance at the Paris-Saclay and Sorbonne poles; on “diversification of market players”, which has long hosted hedge funds without representation in Paris (such as Citadel and Millenium); It is on “dynamism of French entrepreneurship in fintech and cryptocurrencies”, such as the Sorare and Ledger unicorns. According to him, these goods must “allow Paris to establish itself in the field of crypto-assets”.

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