French Regulators Target Unregistered Crypto ATMs Ahead of MiCA Implementation Deadline
French regulators banned unregistered crypto-asset
ATMs operating within the country, targeting businesses that provide illegal
digital asset services.
The French Financial Markets Authority (AMF)
collaborated with the Paris inter-regional jurisdiction (JIRS) to carry out a
series of investigations, leading to search and seizure operations in June and
December 2024.
According to the regulator, the crackdown followed concerns about heightened money
laundering and illegal crypto-asset services. With the rise of crypto ATMs that
enable users to buy or sell digital assets like Bitcoin using cash, French
regulators are doubling down on enforcing strict compliance under the Monetary
and Financial Code.
Mandatory Registration
Under French law, crypto-asset ATMs, which allow transactions between legal tender and digital assets, must register as digital asset service providers.
The regulator cited a financial regulation that
mandates the registration of crypto ATMs, saying violations will attract severe
penalties. Operators acting illegally could face up to two years in prison and
fines of up to 30,000 euros.
Additionally, the AMF added that service providers
have approval under the regulation. It warned that compliance is
non-negotiable, especially with the forthcoming implementation of the European
MiCA regulation by December 30, 2024.
France begins accepting crypto service license applicationsFrance’s financial regulator, the Autorité des Marchés Financiers (AMF), is now accepting applications for crypto asset service provider (CASP) licenses, making it the first major EU economy to implement the upcoming…
— CoinNess Global (@CoinnessGL) August 2, 2024
The AMF’s report triggered an investigation by the
JIRS, which reportedly led to two key judicial police operations on June 13 and
December 17, 2024.
During these operations, authorities targeted multiple
unregistered crypto ATMs, executing searches and seizing equipment. The regulator aims to eliminate unauthorized
activities that could expose users to financial risks or facilitate illicit
transactions. The AMF urged digital asset service providers to
comply with existing laws and check its white list of registered operators.
Preparing for MiCA
Looking ahead, digital asset operators will need to
prepare for the European Union’s MiCA regulation, which comes into effect on
December 30, 2024. MiCA will establish a harmonized framework for
crypto-assets across Europe, ensuring stricter controls and safeguarding users
against financial misconduct.
Service providers must prioritize legal compliance to
operate safely and legally in the French market. The recent enforcement
measures serve as a clear warning to those who continue to bypass regulatory
requirements.
This article was written by Jared Kirui at www.financemagnates.com.