Coinhouse, which is a cryptocurrency exchange that is based in Paris, has just gotten registration with France’s top financial regulator, the Financial Market Authority (AMF). With the registration the firm obtained the opportunity to getting banking services in France.
The crypto trading company has had this recognition to strictly maintain know-your-customer policy. Coinhouse obtained this registration proving itself worthy like it needed to hire a compliance controller to detect suspicious financial activity, capable enough of freezing assets and making funds available in the case of fraud.
With an eye to making sure the French crypto license, the firm is now raising equity and integrating risk warnings, investment disclaimers and other legal documents and the license is very much needed for brand image.
The firm advanced themselves in security system so that they can be worthy of having AML registration and make it consumer friendly. In France, the only firms that are required to register with the AML for anti-money laundering and anti-terrorist financial reasons are those firms dealing with fiat-to-crypto or crypto-to-fiat services. As we know PACTE Law was passed in Europe in May 2019, and the requirements are acquainted with the law.
Obtaining banking services is the prime impediment to the firm in France’s crypto sector. But it is expected that basic banking services will be in place because of PACTE law.
Expansion with registration
Only one ICO and one crypto firm, Coinhouse, have come under the shadow of the law after the law came in place back in 2019. But the law is still providing the banks with the opportunity of complete denial. Reportedly, five other crypto players including non-French are in negotiation with AML to get the registration statutes. Coinhouse wants to encourage larger hedge funds and family offices as clients to put a little crypto in portfolio management besides cheaper banking. With the registration, Coinhouse will now offer custody services for customers and it has developed some DeFi services. The firm also plans to develop a euro-pegged stablecoin that will allow customers to pre-fund their accounts to buy crypto more quickly and they are expecting to see increase in demand.