Villeroy said “disruption” in the crypto industry was the main reason for stricter rules.
The governor of the Bank of France, Francois Villeroy de Galhau, believes that cryptocurrency companies should obtain stricter regulatory licenses to continue providing services.
He also said that France should implement stricter regulations on domestic digital asset entities as soon as legislation is ready, rather than waiting for other European countries.
Villeroy latest recommendations
According to the central bank governor, cryptocurrency entities should be authorized by stricter regulators than existing ones due to the current “volatile environment.”
Around 60 organizations, including Binance, have been registered by the Autorité des Marchés Financiers (AMF) to offer their products and services in the European country. However, none of them have the license that Villeroy urged.
The Governor insisted that the recent turmoil in the crypto world, which has led to a large number of bankruptcies, an outflow of investor interest, and a market decline, is the main reason why France should speed up such amendments:
“The disruptions that have occurred in 2022 are nourishing a fundamental belief: France should move as quickly as possible to mandatory authorization of DASPs (Digital Asset Service Providers), rather than simply requiring them to register, and this needs to happen before MiCA comes into force to create the necessary trust framework.”
François Villeroy de Galhau Source: Bloomberg
The European Union (EU) approved the Markets in Crypto-Assets (MiCA) regulation in October last year. The upcoming bill is likely to establish a licensing regime for exchanges and other businesses that would apply to all 27 EU member states.
It will focus particularly on combating tax evasion and money laundering and could come into effect in 2024.
time is limited
Villeroy has previously urged European authorities to establish a regulatory framework for cryptocurrencies as soon as possible, otherwise the Old Continent could lose its financial dominance and the euro could suffer adversely:
“Whether it’s digital currencies or payments, we Europeans must be ready to act quickly if necessary or risk having our monetary sovereignty eroded.”
He also said the EU has one or two years to introduce such legislation, otherwise the continent could “lose momentum.” Villeroy expressed his ideas in the summer of 2021, which means a potential bill could appear in the coming months (assuming European regulators consider his suggestions).