French stock market regulator Autorité des Marchés Financiers proposed a reform on how the “crypto-assets that qualify as financial instruments” are regulated and authorized.
Chairman of Autorité des Marchés Financiers (AMF) Robert Ophèle proclaimed that due to the ever-increasing interest in blockchain-based financial assets many challenges have sprung out for regulators. The overall consensus is that there is a need for a change in the regulatory approach. Ophèle argued that ESMA has the competency to head the reform. He also added that ESMA can potentially become the next crypto services provider regulator.
A proposed “pilot regime” for this will prepare the crypto market industry for the challenges of the future. The dubbed “pilot regime” will tackle market infrastructures for blockchain companies that deal with crypto transactions.
MAS also suggested a regulatory sandbox for the security token market. Robert Ophèle believes that established rules and regulatory requirements prevent further growth of blockchain tech, due to the fact that they are intended for centralized systems. “Sandbox” is best described when considering the EU’s crypto industry as a controlled environment in which both new and established crypto companies can test their ideas.
The French regulator stated that approved applicants can test their new ideas or products without paying overhead charges, like compliance fees and exhaustive consumer protection charges
