While part of the French cryptocurrency ecosystem is worried about a potential mandatory PSAN approval from October 2023, MPs Daniel Labaronne and Éric Bothorel have each proposed an amendment that seems to meet industry expectations. Back to the important points of these proposals which will be submitted to a decisive vote on Tuesday 24 January.
Are the PSANs heard by political leaders?
Mandatory PSAN approval: this idea worries digital asset service providers since the amendment tabled to this effect by Senator Hervé Maurey last month.
This is a regulatory response to the fraudulent acts of FTX, but which unfortunately is not adapted to the context. Worse still, it could deliver a fatal blow to a French industry that wants to be responsible, to the benefit of foreign players sometimes playing local regulations.
As a reminder, this amendment aims to accelerate the regulatory timetable on the MiCA regulations, by making PSAN certification mandatory from October 2023. An extremely short deadline, especially since for the moment, no company has managed to agree, in particular because of the compulsory civil liability insurancewhich is currently not offered for cryptocurrency-related companies.
The different issues of such a perspective have also been exposed in detail by our journalist Valentin Demé, Faustine Fleuret, president of ADAN, as well as Owen Simonin (alias Hasheur), CEO of Meria:
This Friday, the concerns of the French ecosystem seem to have been heard. Indeed, while Senator Hervé Maurey’s amendment will be voted on in the National Assembly on Tuesday, January 24, the deputies Daniel Labaronne and Éric Bothorel each proposed an amendment reflecting much more the reality on the ground :
Mandatory PSAN approval, it’s moving 🧙🏼
We were talking about it with @fafleuret and @PowerHasheur on @bfmbusiness the threat of accreditation #PSAN mandatory for unregistered companies in October could condemn the sector 🇫🇷
The concerns seem to be heard by the deputies.— Val (@ValCryptoast) January 20, 2023
Daniel Laboronne, thus recalls that excessively restrictive regulations in France will not protect investors from less scrupulous actors. This is due in particular to the fact that in any case, other companies in the European Union will benefit from the grace period provided for by MiCA, with regard to the equivalent of the authorization provided for in the text:
“If the objective is to prevent too many service providers from registering in France in an opportunistic manner in order to benefit from this regime of tolerance to the tolerance period, it should be remembered that it would be enough for service providers to register in another Member State to benefit from the same grace period. »
If Mr. Maurey’s amendment were to be adopted by the National Assembly, France would then come out the loser, and French investors could still turn to foreign players.
👉 To go further – Discover the status of digital asset service provider (PSAN)
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The key points of these amendments
In their proposals, the deputies Daniel Labaronne and Éric Bothorel heard the arguments of the French actors, as to the lack of relevance of a mandatory PSAN approval, and propose a more consistent version of these regulatory expectations.
However, this does not clear French companies of their obligations, and requirements are made in order to protect investors. In particular, we find the following points:
- Clear communication on potential conflicts of interest;
- Segregation of client funds from company equity;
- A formal ban on using client funds for one’s own account;
- Reinforcement of security measures.
Faustine Fleuret, president of ADAN, considers that these proposals are relevant, both for compliance and innovation :
“These proposals are a step in the right direction, both to effectively protect investors and to preserve the dynamics of innovation and business creation in France. We hope that the parliamentary debates will make it possible to definitively materialize this pragmatic and proportionate solution. These amendments carry a positive message, but also a demanding one for the French sector which is moving towards the European standard at a sustainable pace for its development. »
Furthermore, she recalls that it’s not over yetand that the vote to come next Tuesday will be decisive:
“Adan and the industry very much welcome the pragmatic and proportionate approach that these proposals reveal. Nevertheless, we must remain cautious and await the results of the vote which will follow the debates in the Public Session of the National Assembly on Tuesday evening. Moreover, the position of the government is not known at this stage and could influence the deliberations in Parliament. »
If these two proposals thus go in the direction of the French ecosystem of cryptocurrencies, it is not a question of taking them for granted, and the results of January 24 will therefore have to be followed carefully.
👉 Also in the news – MiCA regulation: final EU vote pushed back to April
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Sources: Amendment no. 61, Amendment no. 81
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I timidly discovered the world of blockchain at the end of 2018 during my quest for financial freedom. Initially invested moderately, it was only two years later that I took the gamble of betting everything on the movement that was taking shape then. I then dedicate 2021 to training myself better to acquire more knowledge and seriousness. As I often like to say: I still have a billion things to learn. And what I do know, I want to share with you.
Vincent Mayor
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