In 2019, France built a new and innovative set of regulations to regulate virtual assets service providers (prestataires de service sur actifs numériques or “PSAN”). But while this regime aspired to the emergence of a strong and competitive industry, France is currently exploring the possibility of modifying this regime, by making it mandatory to register “crypto-crypto” players and subject them to new requirements.
ADAN wishes to warn of the risks associated with such an evolution of the PSAN regime:
- As it stands, the proposed system is unsuitable for digital assets and therefore ineffective against financial crime.
- It is also doubly disproportionate: the risks posed by “crypto-crypto” transactions are extremely low, and the costs induced by this assujettissement – to an still nascent industry - exorbitants.
- The economic slump we are currently experiencing is hurting the entire French economy. Now is more a time for supporting our businesses!
Accordingly, ADAN has sent the following letter to several French elected representatives and urges the authorities to suspend their project and take time for reflection and consultation.
Instead, we propose to establish rules that are more proportionate and better adapted to this industry to ensure the financial security objectives that are defended by the NDAA.