French Government Approves eMoney Legislation

The French government has approved law 2013-100, which reiterates and modifies some of the conditions of the European Electronic Money Directive.

The EMD was originally adopted by the European parliament in 2009, and aimed at providing the market with a clear and balanced prudential and legal framework hereby removing unnecessary or disproportionate barriers to market entry, ensuring greater consistency with the Payment Services Directive

A fundamental change in the new Directive concerned the introduction of proportionate prudential requirements facilitating market access to newcomers. This includes a reduction of initial capital from the current EUR 1 million to EUR 350.000 and new rules on the calculation of own-funds. In combination with the abolition of the exclusivity principle, the new rules will make it easier for electronic money institutions engaged in other business activities, such as telecommunications, to develop innovative services into the payments market.

After the adoption of the law by the European Parliament, its transposition into national law allowed for modifications and opt-outs. France finally adopted its own legislation four years later, with few modifications. The modifications mostly have to do with the national protocol and legislation eMoney providers, both old and new, will have to follow to be able to carry out their activity in the country.