According to a report published on Tuesday, the Court of Auditors particularly wants to review the system of granting consents authorizing market participants to launch in France.
According to a report published on Tuesday, December 19, the Court of Auditors is calling for the strengthening of regulations regarding crypto-assets, and in particular the system for granting consents authorizing market players to launch in France. Under the current state of the regulations, the commencement of activities of “digital asset service providers” (PSANs) is subject to registration with the Financial Markets Authority (AMF).
The registration makes it possible to “create a minimum control base regarding the integrity of the actors, their competence and ability to respect the provisions related to the fight against money laundering and the financing of illegal activities”, the report explains. The second level exists, but is only optional. It allows PSANs to obtain “optional approval from the AMF, provided they have more demanding internal management procedures, confirming their control over financial risks and offering investors a more satisfactory level of transparency”, according to the Court of Auditors.
“Verification Too Weak”
If this system was designed so as not to unduly restrict the development of service providers established in France compared to other foreign companies not subject to French regulations, “checks before mandatory registration are now too weak”, the Court’s financial statements judge.
The current regime therefore led to the registration of 90 PSANs between 2020 and September 2023, with only the optional AMF approval being issued in July 2023. In particular, the institution calls on the General Directorate of the State Treasury, the Budget Directorate, the AMF and the Prudential Control and Resolution Authority (ACPR) to “establish a multi-year trajectory of the funds necessary for the supervision” of PSAN, especially with the aim of “guaranteeing the control of registered operators and strengthening the fight against unauthorized operators.”
Work has already begun at the AMF, its president Marie-Anne Barbat-Layani said in a letter in response to the Court of Auditors’ report, which specifies that the financial police is targeting a “total workforce of 6.5 full-time posts”. equivalents, specifically dedicated to PSAN supervision in early 2024.
Ms. Barbat-Layani further refers to the European calendar, with the European Union recently adopting a new regulation on crypto-asset markets (MiCA), which “sets mandatory authorization for digital service providers by the end of December 2024. assets”, replied the president of the AMF. However, the French parliament has planned “to introduce mandatory enhanced registration for the provision of services on digital assets in France from 1 January 2024”, not wanting to wait for the European regulation to apply, the Court of Auditors notes. .