France gets new financial watchdog, warns the likes of Binance and Crypto.com

Marie-Anne Barbat-Layani, a former bank lobbyist, will now head France’s financial markets regulator, Financial Markets Authority (AMF). The French government is keen on becoming a crypto hub, therefore this is a key move for crypto adoption in the country. 

Also read: Bitcoin price: Could BTC be headed to $13,000 in the global liquidity crunch?

France gets new crypto watchdog Financial Markets Authority

French lawmakers voted in favor of former bank lobbyist Marie-Anne Barbat-Layani’s appointment as chair of the new crypto watchdog, Financial Markets Authority (AMF). The French government is keen on becoming a crypto hub and has set up one of the first crypto licensing regimes in the European Union. Bruno Le Maire, finance minister reiterated France’s desire to be a crypto hub in a recent interview on October 17, Monday. 

Leading crypto players Binance and Crypto.com have already registered under the country’s regime, managed by the AMF, alongside the central bank. 

France anticipates the European Union’s bloc-wide rules as the Markets in Crypto Assets Regulation (MiCA) could take effect in 2024. The new chair Barbat-Layani has sent a warning to  licensed crypto firms, reminding lawmakers that licenses once granted are temporary. The chair clarified that licenses are not permanent and can be taken away, this is an intended feature and not a bug in the policy of the financial watchdog. 

If a crypto firm sees their registration withdrawn it would act as reverse advertising and the AMF has sought this in its terms of communication. Barbat-Layani said, “I greatly admire the approach that was taken by the AMF (in setting up the system and ensuring protection for young investors). It was a form of bet, not necessarily welcomed unanimously at the time … I think that this risk taking was justified.”

Bykep, a crypto company recently had its registration removed without its consent, AMF’s first move in revoking a crypto license. The regulator cited serious failings in money laundering controls and a cyber attack as the key reasons behind the revoking the license. According to the French financial watchdog, Bykep had protested that the accusations didn’t justify the removal of its license.