FRANCE Law and Practice Contributed by: Hubert de Vauplane and Hugo Bordet, Morgan Lewis & Bockius LLP
Status of CASP The status of CASP established by MiCAR is largely inspired by the French regime under the PACTE Act. This status has been transposed into the French Monetary and Financial Code by an ordinance dated 15 October 2024. The cryp - to-asset services that trigger licensing require - ments are substantially similar to those already The provision of crypto-asset services requires a licence as a CASP, obtained from the AMF. However, it is accepted that other licences may also allow the provision of these services, pro - vided that prior notification is made to the AMF. This includes licences as a credit institution for all crypto-asset services, or as investment firms under MiFID for crypto-asset services equivalent to those for which they are specifically licensed. The licensing request is subject to compliance with AML regulations, market abuse regulations and outsourcing requirements, and triggers pru - dential requirements. Cross-Border Provision of Crypto-Asset Services Previously, a DASP licence did not allow for operations beyond French borders with foreign clients. However, MiCAR now provides that, regarding the cross-border provision of crypto- asset services, CASPs licensed in an EU Mem - ber State may, subject to notification to their home country’s competent authority, provide crypto-asset services throughout the entire EU. 10.6 Staking existing under French law. Licensing Requirements Staking is not regulated as a distinctive activ - ity or service under French law. Depending on the way the staking services are being pro - vided (whether directly, through a centralised exchange platform, or by using the technology
However, a recent act provides that DASPs reg - istered after 1 January 2024 will be required to comply with additional requirements. Essential - ly, the rules that apply to licensed DASPs (see below) will be extended to registered DASPs, with the exception of capital requirements. AMF Licence In addition, all entities that are actively involved in crypto-assets may apply for an optional licence with the AMF, including those entities which also provide other services (such as reception and transmission of orders, portfolio management, advice to subscribers, etc). Obtaining the licence triggers the application of the AML legislation, as well as various other obligations similar to those of ISPs. In return, licensed DASPs are allowed to market and advertise their services broadly to French clients. Other Crypto-Asset Platforms If DASPs operating a crypto-asset exchange platform allow their clients to deposit legal cur - rency or collect client funds to place orders on their behalf, these DASPs are required to obtain payment service provider status or delegate the handling of legal currency flows to a regulated provider. As for platforms trading crypto-assets which qualify as financial instruments, such as deriva - tives based on crypto-assets, they will likely need to obtain authorisation to operate as regulated markets, MTFs or OTFs. However, the ESMA’s Report on Crypto-Assets and Initial Coin Offer - ings (January 2019) suggests that peer-to-peer platforms where crypto-assets that qualify as financial instruments are listed might fall outside the scope of the European regulation.
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