France demands that companies dealing in fiat-crypto and services register with the authorities to comply with anti-money laundering laws.
Cryptocurrency trading company Coinhouse has become the first crypto company to be registered with France’s top financial regulator, the Financial Markets Authority (AMF). This means the company could gain access to banking services in France.
As the regulators are making sure that crypto firms pass the stringent guidelines to secure a permit, Coinhouse had to prove it was capable of freezing assets and making funds available in the case of proven fraud. It also had to hire a compliance controller to detect suspicious financial activity and prove it could use blockchain analysis tools like Scorechain.
In France, the only firms that are required to register with the AMF for anti-money laundering and anti-terrorist financing reasons are those firms dealing with fiat-to-crypto or crypto-to-fiat services. The requirements come out of guidelines based on France’s PACTE law, one of the first crypto legislative packages passed in Europe in May 2019.
In addition to more cost-efficient cheaper banking, Coinhouse also expects to be able to attract larger hedge funds and family offices as clients. According to Coinhouse spokesman Julien Moretto, the trading firm wants to encourage those clients to “put a little crypto in their portfolio management.”
Coinhouse has also developed some DeFi services, like staking, that require crypto custody. With the registration, it will now offer custody services for customers instead of having customers carry staked crypto in their personal wallets. Coinhouse also plans to develop a euro-pegged stablecoin that will allow customers to pre-fund their