France Tightens Domestic Crypto Rules, This Is A Banque De France Governor's Advice!

The governor of the French central bank urged the government to make stricter crypto rules. (Photo; Doc. CryptoAst)

JAKARTA French central bank governor Banque de France, Francois Villeroy de Galhau, stressed the importance of strict rules against the domestic crypto industry. Therefore, crypto companies must comply with these rules and obtain permits before operating.

Furthermore, he advised the French government to draw up more stringent crypto rules against domestic digital asset entities without having to wait for other European countries to do the same.

According to officials of the French central bank, cryptocurrency entities must obtain stricter authorization from supervisors than those already exist due to the current "unstable environment".

About 60 organizations, including Binance, have obtained permission from The Autorite des Marches Financiers (AMF) to offer their products and services in European countries. However, no one has the license as Villeroy urged.

The governor stated that recent chaos in the crypto world, which sees a lot of bankruptcy, the outflow of investor interest, and the decline in markets, are the main reasons why France should accelerate the amendment.

"Disruption seen in 2022 dampens one basic belief: France must switch as soon as possible to mandatory DASP authorization (digital asset service providers) rather than simply requiring their registration. And this needs to be implemented long before MiCA comes into effect to create the expected confidence framework," Villeroy said, quoted by CryptoPotato.

Previously, the European Union (EU) approved a Market Regulation in Crypto Assets (MiCA) in October last year. The upcoming bill could establish a related licensing regime for exchanges and other businesses that would apply to all 27 block members. MiCA rules will specifically focus on fighting tax and money laundering embezzlement and will be implemented in 2024.

Europe Can lose its Financial Domination

Villeroy had previously urged European authorities to establish a cryptocurrency regulatory framework as soon as possible because otherwise the Old Continent could lose its financial dominance while the euro could suffer a setback.

"Whether it's a digital currency or payment, we in Europe must be prepared to act as quickly as necessary or risk erosion of our monetary sovereignty," said the Governor of Banque de France.

He also said that the European Union had one or two years to introduce such legislation, or the continent could "loss its momentum."

Villeroy expressed his thoughts in the summer of 2021, meaning that the bill has the opportunity to be implemented in the following months (assuming European watchdogs are considering its recommendations).