Francois Villeroy de Galhau, Governor of the Banque de France, has called for a mandatory licensing regime for crypto service providers, arguing that the existing registration system is no longer adequate. Speaking to financial sector representatives, he cited the “disorder” in the industry throughout 2022 as a clear signal that stricter regulation is needed.
From Registration to Licensing
“All the disorder in 2022 feeds a simple belief: it is desirable for France to move to an obligatory licensing of Digital Asset Service Providers (DASPs) as soon as possible, rather than just registration,” de Galhau stated. Currently, around 60 crypto platforms, including Binance, are registered with the Autorité des Marchés Financiers (AMF), but none have obtained the optional license, which demands higher standards in organization, financial resources, and conduct.
The governor urged France to act ahead of the upcoming EU Markets in Crypto Assets (MiCA) regulation, which was agreed upon in summer 2022 and is expected to take effect in 2023, with an additional 12-18 months for compliance. Brussels also plans to require platforms processing crypto transactions for EU residents to report to tax authorities.
Shifting Regulatory Landscape
The proposal comes after a turbulent year that saw major crypto firms collapse, intensifying global regulatory scrutiny. France has been proactive through its PACTE law, but de Galhau’s remarks signal a push for even tighter controls to protect investors and financial stability.
Market analysts believe a mandatory licensing regime would attract compliant institutions but could raise costs for smaller players, accelerating consolidation. While no timeline has been set, the move is expected to influence European and global crypto policies. All eyes are on Paris as it considers preempting Brussels with a stricter domestic framework.