Press release — French Digital Asset Association
Co-Host of the Paris Blockchain Week Summit
The FD2A welcomes the outcome of the parliamentary debates on the PACTE law and the new regime applicable to the actors of the digital asset market
After several months of legislative work, the provisions of the PACTE law relating to digital assets, finalized in session on March 15, 2019, constitute a positive sign for the crypto ecosystem and allow France, to appear as a pioneer jurisdiction.
The proposed regime, for utility token issuers on the one hand and for digital asset service providers, on the other hand, aims to respond to the specificities of digital asset activities while ensuring their sustainable development, therefore financing the economy. Thus, the optional nature of the regime deserves to be welcomed. In addition to the regulatory innovation it provides, it allows a level of flexibility necessarygiven the level of maturity of the sector, and acts as a vector of attractiveness.
Lastly, this regime helps enhance confidence between the various players in this new economy, in particular by making it easier for those who choose the regulatory label to access deposit and payment accounts from banking institutions.
The regime in key words …
The regime established by the PACTE law essentially comprises two components:
1. An optional visa for public offers of utility tokens- issuers interested, may in fact apply for a visa from the Autorité des marchés financiers (AMF) as part of the launch of a public offer of utility tokens. Three main requirements arise from this regime:(i)the obligation to prepare an information document that will be submitted to the AMF; (ii)the obligation to set up a system for monitoring and safeguarding the assets collected as part of the public offer; and (iii)the obligation to respect the rules in force in the fight against money laundering and terrorist financing (AML/CTF).
2. An optional licence for digital asset service providers — the law establishes a list of services on digital assets. Providers requesting a licence for those services, may be approved and placed under the supervision of the AMF. Some of the digital assets related services covered are (i) custodian wallet provider; (ii) crypto/fiat exchange provider; (iii) crypto/crypto exchange provider; or (iv) crypto trading platform. A decree will further define each of the services mentioned above.
A major exeption to the optional nature of the regime : the obligation to register with the AMFfor (i) custodian wallet providers and (ii) crypto/fiat exchange providers.These providers will also be subject to compliance with AML / CFT requirements from the 5th EU Directive.
Next steps: ensuring the functioning of the legislative framework in practice
The FD2A remains mobilized and very attentive to the content of the application texts(decree, AMF general regulations, instructions, etc.) that will allow the proper functioning, in practice, of the legislative provisions.
Thus, the FD2A calls for the following three principles to govern the drafting of these texts:
Ø Readability- it is essential for the regime to be clear, precise and understandablenot only for French actors, but also for foreign players who choose to settle in France. The introduction of the new regime will therefore necessarily have to be accompanied by the publication of a practical guide and the regulations will have to be translated into English.Clarification will also be needed on the articulation of this new regime, with the existing regimes.
Ø Proportionality- the level of regulatory requirements should be proportionate and adapted to the nature of the risks and specificities of the targeted activities in order to encourage a virtuous market discipline and to support the development of innovation.
Ø Attractiveness– in addition to the adapted nature of the applicable rules, a joint effortbetween the supervisory authorities and the local associations will be essential to ensure the deployment of the regime.
In this context, the FD2A and its members remain fully mobilized to ensure the success of the new legislative framework.
Contacts : email@example.com
Website : www.fd2a.com