With the United States regulators targeting crypto companies operating in the country, a number of CEOs are already planning to set up shop overseas. One of them is Ripple boss Brad Garlinghouse. In the latest interview with CNBC, the crypto guru said the ongoing crackdown on crypto firms and lack of clear regulations would force these companies to exit the United States.
Garlinghouse stated that Europe could be the top beneficiary of the regulatory chaos happening in the US once the Markets in Crypto Assets (MiCA) rule book takes effect. Passed by the European Union Assembly in early May, MiCA is a crypto regulatory framework set to be adopted by EU member countries starting next year.
Besides MiCA, some of the EU members, like France, already have comprehensive crypto guidelines, which crypto players in that region say promote the industry’s development.
French Regulator Welcomes US-Based Entities
The Secretary General of France’s Autorité des Marchés Financiers (AMF), Benoît de Juvigny, is now calling on American entities to capitalize on France’s clear crypto regulations. Juvigny says the French crypto framework aligns with MiCA, thus making existing companies compliant with the upcoming EU regulations.
As of May 2023, France hosts 72 licensed crypto firms. This figure is, however, expected to increase as MiCA adoption nears. Some of the global brands already registered with AMF include Binance, eToro, Luno, and Crypto.com. USDC’s issuer Circle is in the process of acquiring a license from the French agency for its EUROC product.
It is important to highlight that AMF is letting crypto trading platforms operate without needing a full license until the end of the year. However, all crypto companies must be fully licensed by January next year to continue operating.
Companies looking to secure full licenses will undergo a rigorous registration process to ensure they are compliant with the impending MiCA guidelines. Firms that pass this test have the right to operate in all European Union member states after the implementation of MiCA.
Crypto Rules Seem Clear but Not Perfect
The French crypto rules and MiCA have yet to clarify various aspects of the industry, such as Non-Fungible Tokens (NFTs) and Decentralized Finance (DeFi). These regulatory frameworks only focus on fungible tokens like Bitcoin and USDT.
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