still very limited activity for players registered in France

Digital Asset Service Provider (PSAN), companies that provide services on the cryptocurrency and cryptocurrency market registered with the Autorité des Marchés Financiers (AMF), now number 37.

A limited volume of activity

In its annual report published on Tuesday 31 May, the Supervisory Supervisory and Resolution Authority (ACPR) indicates that, according to a survey carried out in September 2021, the 19 PSANs active in 2020 employed 165 people dedicated to these activities, covering 46,000 customers . French assets, meaning having made at least one transaction in 2020. These 19 PSANs processed € 204 million worth of transactions and held € 198 million worth of digital assets at the end of 2020.

“Many players are recent and therefore have a limited volume of activity and not very personal. These figures appear modest compared to the likely penetration rate of digital assets in France. This is due to the fact that several large foreign players have a French clientele without actively promoting the territory. However, these players have generally initiated a registration procedure with the MFA “notes the ACPR in its annual report.

Binance Provided “Satisfactory Commitments”

Speaking of foreign players, Binance is the latest major platform to have its registration in France. In this regard, the President of the ACPR and Governor of the Banque de France, François Villeroy de Galhau, specified that the controversial platform applied “exactly the lyrics” allowing him to get his sesame. The role of the ACPR in this area is to verify the aspects relating to the procedures to combat money laundering and the financing of terrorism (LCB-FT), as well as the criteria of “integrity” and the skills of the managers. It is up to the regulator to give consent, then pass the baton of the investigation into the file to the MFA. “We have had satisfactory commitments from Binance”Francesco said Villeroy de Galhau.

In 2021, the ACPR thus issued a favorable opinion on the registration by the MFA of 21 new PSANs. From 1uh January 2022, nine new actors were registered. From this year, the PSANs will be the subject of an annual LCB-FT questionnaire, “close to that applicable to other financial institutions”.

Regulation of cryptocurrencies internationally

“The G7 recently passed a resolution that crypto assets should be regulated internationally, for reasons of anti-money laundering and customer protection. What has happened in the markets since the beginning of the year shows this need for regulation.”commented the Governor of the Banque de France, who recalled that investments in cryptocurrencies were “to be reserved for informed investors” and that the work of the ACPR was also “adopt regulatory measures to make information and transparency mandatory for investors”.

The G7 also expressed itself in favor of the “travel rule“, which would imply for digital asset service providers to know the sender and recipient of any transaction. A provision that should be part of the anti-money laundering legislative package currently under consideration by the European Commission. The other European regulation on cryptocurrencies. , MICA, could be adopted this year, according to François Villeroy de Galhau, who welcomed it “France and Europe are quite exemplary” in the application of international principles relating to cryptocurrencies.

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