Regulation of Crypto Services for Financial Institutions : What You Need to Know
- BECTRA
- Feb 15
- 2 min read
The rise of crypto-assets requires banks, investment firms, and other French financial institutions to comply with strict regulations before offering crypto-related services. In France, these entities must notify their regulator (AMF or ACPR) at least 40 days before launching their services.
🔹 Who is concerned?
The following entities are required to inform their regulator before operating in the crypto-asset market :
✅ French banks
✅ French investment firms
✅ Electronic money institutions
✅ Fund management companies
✅ French market operators
✅ Caisse des Dépôts et Consignations
📌 Information to be provided to regulators
1️⃣ Activity program
📍 Detail the planned crypto services, their geographical scope, and how they will be marketed.
2️⃣ Risk management & compliance
📍 Present internal mechanisms to prevent money laundering and terrorist financing.
📍 Provide a business continuity plan in case of major incidents.
3️⃣ IT security & infrastructure
📍 Provide detailed technical documentation + a simplified version for authorities.
4️⃣ Segregation of client funds
📍 Explain the mechanisms ensuring the security of crypto-assets and client funds.
5️⃣ Crypto-asset custody (if applicable)
📍 Explain the policy for storing and managing client crypto-assets.
6️⃣ Trading platform regulations (if applicable)
📍 Describe the platform's operation and market abuse detection systems.
7️⃣ Pricing & commercial policy
📍 Justify pricing models and ensure fair pricing for all clients.
8️⃣ Order execution
📍 Detail how crypto-asset orders will be processed for clients.
9️⃣ Competence of advisors and managers
📍 Demonstrate that teams possess the required expertise to advise or manage crypto portfolios.
🔟 Types of crypto-assets covered
📍 Indicate whether services apply to stablecoins, electronic money tokens, or other crypto-assets.
1️⃣1️⃣ Crypto-asset transfer services
📍 Explain how crypto-asset transactions and transfers will be carried out.
No new authorization required, but strict compliance
Financial institutions are not required to apply for a new authorization or comply with additional prudential requirements. However, they immediately lose their right to offer crypto-asset services if they lose their financial entity license.
Anticipation and transparency are essential to ensuring a smooth transition into crypto-asset services under MiCA!
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