France’s AMF to introduce enhanced digital asset service provider registration
France’s Financial Markets Authority (AMF) is amending the provisions of its General Regulation and its policy on the regime for digital asset service provider (DASPs).
A new Article 721-1-2 of the AMF General Regulation, which will come into force on January 1, 2024, has been created to extend the provisions of DASP licence to DASPs subject to enhanced registration, in the various areas now covered by enhanced DASP registration: adequate security and internal control systems, systems for managing conflicts of interest, clear, accurate and non-misleading information, public pricing policies, specific custody provisions (segregation of client assets vs. own assets), prohibition on using client assets without their express prior consent, agreement signed with clients, resilient and secure IT system, a ban on using client assets without their express prior consent, a signed agreement with clients, and a resilient and secure IT system.
The amendments to the AMF General Regulation and to instructions DOC-2019-23 (preparation of a registration and licence file) and DOC-2019-24 (cybersecurity system of requirements) will come into force on January 1, 2024 but must be taken into account in the file by applicants for enhanced DASP registration
As a reminder, DASPs that obtained a simple registration before January 1, 2024 benefit from a “grandfather” clause and continue to be subject to the framework applicable before this date.
New provisions, applicable from January 1, 2024, are also included in position-recommendation DOC-2020-07 (Questions and answers relating to the PSAN regime), in addition to the update made on July 19, 2023. The amended forms relating to this enhanced registration will be available in September 2023.