In light of the recent cryptocurrency market turbulence, Francois Villeroy de Galhau, the Governor of the Bank of France, has suggested that local digital asset service providers (DASPs) should be required to obtain a license, as opposed to simply registering, in order to operate in France.

Currently, it is not mandatory for companies to do this, and only 60 out of the nation’s registered cryptocurrency firms have chosen to receive a license.

These companies must adhere to certain rules related to their business structure, behaviour, and financing.

A Senate finance commission member proposed an amendment in December which would remove the clause permitting firms to operate without a license.

However, current regulations in France allow unlicensed firms to stay in operation until the Markets in Crypto Assets bill (MiCA) is passed and a licensing system is established, which is not expected to take place until 2026.