The French AMF Has Published Licensing Rules for Crypto Companies

The French Financial Markets Authority (AMF) has published licensing rules for digital asset service providers (DASPs), as well as guidelines for firms applying for a non-mandatory license. The rules and guidelines expand upon PACTE law adopted in May 2019.

To apply, each DASP must provide a two-year business plan, a list of digital assets that the firm will service, a list of regions in which it will operate, and the organizational structure of the firm. Licensed DASPs must have a professional insurance indemnity or a minimum reserve amount, at least one effective senior manager, a stable IT system, internal control systems, claims processing procedures, a control system to prevent money laundering and terrorist financing.

The regulator also issued special rules for cryptocurrency custodians, cryptocurrency exchanges and brokers. The new rules for licensed custodians, in accordance with the general rules, include multi-validation verification of customer transactions and compensation to customers if the custodian cannot restore control of the assets.

In the guidelines, AMF notes security risks and asks to provide a detailed cybersecurity program that mitigates risks and complies with Europe’s general data protection regulation.

Image courtesy of: Daily Coin