FRANCE Law and Practice Contributed by: Hubert de Vauplane and Hugo Bordet, Morgan Lewis & Bockius LLP
1. Fintech Market 1.1 Evolution of the Fintech Market The SREN Act The Law to Secure and Regulate the Digital Space ( Loi visant à sécuriser et réguler l ’espace numérique , “SREN Act” ) establishes a regulatory framework for games with monetisable digital objects ( jeux à objets numériques monétisables , JONUM) for an experimental period of three years. These games combine elements of video gaming and online gambling. The objective is to strengthen oversight of Web3 games that utilise technologies such as blockchain, crypto-assets and non-fungible tokens (NFTs). Article 41 of the SREN Act sets forth several obligations for com - panies operating JONUM. They must declare their activity to the French National Gaming Authority ( Autorité nationale des jeux , ANJ), meet office establishment requirements and strictly prohibit minors from paid gaming, with manda - tory age verification, especially when creating an account. The creation of such an account is required to participate in these games. DORA Act Implementation Since 17 January 2025, the Digital Operation - al Resilience Act (Regulation (EU) 2022/2554), commonly known as DORA, has been applicable across the EU. This regulation imposes several obligations on financial entities to prevent, man - age and address the consequences of ICT risks. DORA specifically requires a Threat Lead Pen - etration Testing (TLPT) framework, in line with the TIBER-EU framework. In this context, France is playing a pioneering role in the implementation of DORA require - ments. In January 2024, the ACPR and the BdF jointly developed the TIBER-FR implementation guide providing further context and clarifica - tion for DORA’s TLPT requirements. Together,
the French Prudential Supervision and Resolu - tion Authority ( Autorité de contrôle prudentiel et de résolution , ACPR) and Banque de France (BdF) form the TCT-FR (TIBER Cyber Team for France), also referred to as the TLPT Cyber Team in DORA.
Transfer of Ownership of Securities Registered on a Distributed Ledger Technology (DLT) Platform
On 31 May 2024, the Legal High Committee for Financial Markets of Paris ( Haut Comité Juridique de la Place Financière de Paris , HCJP), a think tank representing both the authorities and experts in financial law, published a report titled “On the determination of the law applica- ble to assets registered in distributed ledgers” . It made several proposals, one of which con - cerned the law applicable to financial securities covered by the DLT Pilot Regime (p20). This proposal is taken up by the new Article L. 211- 7 of the French Monetary and Financial Code, according to which “the conditions and prop- erty effects of transactions in financial securities registered using distributed ledger technology under the conditions laid down by Regulation (EU) 2022/858… are determined by the law of the State where the entity authorised to oper- ate the DLT settlement system or, where appli- cable, the DLT trading and settlement system is located” . FSB Peer Review In 2024, the Financial Stability Board (FSB) conducted a peer review in France, with a spe - cific focus on fintech. A first report presents its findings and conclusions, including the key elements of the discussion in the FSB’s Stand - ing Committee on Standards Implementation in October 2024. This second FSB peer review of France is based on the objectives and guidelines for the conduct of peer reviews set forth in the
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