Clifford Chance

The Autorité des marchés financiers (AMF) has published a Q&A document setting out its requirements with respect to the digital asset service provider (DASP) registration or licence.

With the Questions & Answers on the digital asset service providers regime the AMF hopes to answer the most frequently asked questions from French and international businesses that wish to apply for DASP registration or license.

The regime was created under the law of 22 May 2019, known as the 'PACTE Law'. Service providers who began their activity before the law entered into force have until 18 December 2020 to register. The AMF notes that a registration as a DASP is mandatory for two types of services:

• the purchase and sale of digital assets in legal tender and
• the custody of digital assets for third parties.

It also specifies the criteria according to which a foreign-based DASP is deemed to provide these services to clients resident or established in France and thus subject to the registration requirement.

The AMF has, until now, granted registrations to two DASPs, with about twenty applications being processed. Although several licensing applications have been submitted, no entity has been licensed to date.