France may require crypto companies to obtain a full license to operate in the country after a lawmaker proposed harmonizing the country's laws with future European regulations.
Hervé Maurey, a member of the Senate who sits on the Finance Committee, presented an amendment on Tuesday that would remove the grace period France is currently considering to expand to cryptocurrency platforms .
Currently, regulations allow cryptocurrency companies to operate in the country without a full license until 2026. The new proposal, which was approved by the Senate this week and will be presented to the French Parliament next year, requires companies to obtain a full license. Financial Supervision Authority from October next year.
European lawmakers approve bill to regulate cryptoassets
This will comply with the EU Markets in Crypto Assets Regulation (MiCA), which will be voted on by the European Parliament in 2023 .
"The recent failure of FTX has highlighted the inherent risks of investing in crypto-assets, especially when the company operates outside of regulation," Maurey wrote in a correction. "These concerns are shared at the level of the European Union, including financial actors."
France's current two-tier system requires companies to register as providers of crypto-assets, but then allows them to obtain a full license, which requires a higher level of disclosure. Although around sixty service providers are registered with the Autorité des Marchés Financiers (AMF), none have opted for full accreditation.
Maurey's amendment said the MCA would have similar requirements for the broader approval system.
His proposal would close the option of simple registration and force companies to obtain a full license, in line with the EU framework.
If the amendment passes Parliament, it could deal a blow to France's crypto-friendly reputation, which has prompted companies like Binance and Crypto.com to set up shop there .
Local crypto lobby group Adan told the Financial Times that the change shows that the country has abandoned its plans to become a European cryptocurrency in the wake of the FTX scandal.
Decrypt has reached out to Binance and Crypto.com for comment .