Crypto trading company Coinhoouse became the first crypto company to register with the Financial Markets Authority (AMF). As a reminder, the AMF is the top financial regulator in France.
According to the spokesman of Coinhouse, Julien Moretto this decision shows that Coinhouse is a serious company. Moreover, it follows a strict know-your-customer policy.
Importantly, Coinhouse had to prove it was capable of freezing assets as well as, making funds available in the case of proven fraud. Moreover, another prerequisite to receiving a registration was to hire a compliance controller. This employee should detect suspicious financial activity. Furthermore, Coinhouse had to prove it could use a blockchain analysis tool such as Scorechain.
French crypto license and Coinhouse
This is not the end of the story. The trading company is now raising equity and integrating risk warnings. Also, the company is preparing investment disclaimers and other legal documents. Coinhouse plans to apply for the French crypto license.
Interestingly, at the moment it is not mandatory to have a crypto license. However, the company wants to obtain the license as it is important for the brand image. Moreover, the French crypto license will allow Coinhouse to produce commercials and ads about their services.
Thanks to the registration, Coinhouse expects to attract larger hedge funds as well as family offices as clients.
Crypto trading company also plans to develop a euro-pegged stablecoin. This stablecoin will allow clients to pre-fund their accounts to buy crypto more quickly.
The company expects that number of clients will increase across the entire business, thanks to registration and subsequent license.
As a reminder, Coinhiuse developed some DeFi services such as staking, that require crypto custody. Thanks to registration from now on Coinhouse will offer custody services for customers instead of having customers carry staked crypto in their wallets. As can be seen from the information stated-above, Coinhouse made a huge step forward by registering with the French authorities.