It is a fact that the European Union is on the same level as the United States when it comes to cryptocurrency regulations and strictness.
The region is very concerned about the safety of funds of its citizens and wants to streamline the entire crypto industry.
Their first preference is to ban the crypto industry but the current situation does not allow that. In over a decade, the cryptocurrency industry has entered the financial system of the entire world.
Therefore, it is not possible for European countries to push cryptocurrencies out of the system. All they can do is ensure that the cryptocurrency industry is regulated enough so it never gets out of control.
To ensure that it happens, the regulatory authorities and the governments in every EU country are demanding stricter regulations to be introduced.
They want the cryptocurrency sector to be controlled as much as possible.
France Wants Strict Regulations
France has also emerged as a European country that wants the cryptocurrency industry to be fully controlled. It wants the sector to be handled in a manner that does not go out of control.
Every regulator has grown really cautious of the cryptocurrency industry, especially after the FTX crash.
For the regulators, it is nothing more than a scam that was run by the scammers stealing the funds from innocent investors.
Just recently, the governor of the Bank of France raised his concerns over the cryptocurrency industry in the country.
He has demanded that it must be very difficult for the cryptocurrency industry to gain operational access in the country.
He clarified that he does not mean that they should be kicked out. He reiterated that the requirements and the screening/monitoring system in France must be very strict pertaining to crypto approvals.
Any crypto firm or entity wanting to operate in France must undergo a very strict and stringent process before getting issued the respective license.
The governor cited the recent market turmoil as well when talking about the need for a strict regulatory framework pertaining to cryptocurrencies.
Speech by Francois Villeroy
On January 5, the governor of France delivered a speech in Paris, France, talking about the importance of a strong regulatory framework for cryptocurrencies.
He stressed the fact that cryptocurrency firms must not be allowed to operate following a few simple checks. The requirements they have to go through have to be very strict and demanding.
As per him, the country must not wait for the European Union to come up with laws controlling cryptocurrencies. Instead, it must be France that needs to come up with stricter requirements.
The requirements must be made obligatory for the DASps (digital asset service providers), and once they meet those requirements, they should be allowed a license.
The cryptocurrency laws from the European Union are expected to come out somewhere in the year 2024. That is when the bills for Markets in Crypto Assets (MiCA) will be presented at the European Parliament.
It is important that the government of France does not wait that long and take the necessary actions. This way, the country will have a strong regulatory system to control the cryptocurrency industry.
This way, the cryptocurrency firms with the intention of defrauding people would remain at bay and will not think of doing anything like that.
Villeroy Addressed the Financial Sector
The speech that Villeroy made was especially for the financial sector of France. It is the sector that is mainly impacted by the cryptocurrency industry so it has to be very vigilant and strict when it comes to crypto adoption.
He stressed that the financial and regulatory sectors in the country must work together to come up with a strict regulatory framework for cryptocurrencies.
This way, investors in France will be able to interact with safe and regulated cryptocurrency firms.