“MiCA is a unique opportunity to inject France into the global crypto asset landscape and solidify the place of Paris.”. At the end of the conference on European regulation issues regarding blockchain and crypto assets for the securities industry, organized by the French Association of Securities Professionals (AFTI), Deputy Director of Corporate Finance and from the Financial Market to the General Treasury Department, Pierre Chabrol understood France’s ambitions very clearly .
rule partly inspired by France
MiCA regulation (Crypto Asset Markets), which is currently being discussed in the European Parliament, should regulate crypto assets at the EU level. It has three main objectives: to regulate market participants through the creation of the European Digital Asset Providers Statute (PSAN), to protect investors and guarantee financial and monetary stability, and to combat money laundering. Its entry into force is currently estimated at the end of 2023/beginning of 2024.
Pierre Chabrol summed up the French position with a delicate balance between “proven support for innovation”, risk management and the implementation of fair competition between sector players. The fact that French rules inspired this European text “international pioneer“, in particular on the status of PSAN, is, according to a senior official, an opportunity to increase the attractiveness of the Parisian financial services market.
use “pilot mode” to run experiments
Another regulation that is in the process of being adopted at the European level, the “pilot scheme for market infrastructures based on blockchain”, is the second lever that France is counting on to develop its ecosystem. This text, aimed at creating a transitional regulatory framework designed to validate the use of blockchain technologies in market infrastructures, is due to come into force at the end of 2022. It complements the MICA, which excludes decentralized finance from its scope.
“France fought hard to get an experimental scheme“, – said Pierre Chabrol. “It is interesting to be able to initiate experiments that can reach the level of industrial development, in a safe environment. This is quite an important step. We are ready to support interested players in the development of projects. We can get a significant comparative advantage from them.”he explained.
means of self-assertion
After Brexit, France spared no effort to attract capital and financial companies. “Several tens of billions of euros repatriated to Paris”noted the deputy director of the DGT, who wishes “make Paris the capital of innovation in the field of crypto assets and decentralized finance”.
For this, he relies “the presence of a personnel reserve” in mathematics and quantitative finance at the Paris-Saclay and Sorbonne poles; on the diversification of market players, which for some time accepted hedge funds that did not have a presence in Paris (such as Citadel and Millenium); and on “The dynamism of French entrepreneurship in the field of fintech and cryptography”like the unicorns Sorare and Ledger. According to him, these assets should “allowing Paris to make a name for herself in the crypto asset space”.