Will France Lead EU Into Adopting Regulatory Framework For Crypto?

By Rishma Banerjee

With blockchain technology and cryptocurrencies becoming more and more popular with each passing day, it seems that France is well on her way to motivate her European Union neighbours to incorporate a crypto related framework to its newly implemented financial sector legislation.

Its new laws have been structured to keep the Finance Ministry, exchanges, and traders satisfied that there is a little bit of harmony for all, and a relief for many traders who have been expecting a tightening of cryptocurrency guidelines this year.

French Finance Minister Bruno Le Maire evidently wants to share the joy with the rest of Europe, although at this stage it seems unlikely that the UK would come on board with Brexit and European elections looming. France has jumped to head of the Euro queue in adopting a national regulatory framework and sees this as a solution for the other 26, or possibly 27. Le Maire said:

“I will propose to my European partners that we set yp a single regulatory framework on crypto-assets inspired by the french experience.”

Le Maire who is clearly confident added that “our model is the right one”, although it remains to be seen how this suggestion will be greeted by other EU members.

The French government’s new cryptocurrency bill will now be giving startups and other platforms that want to issue new cryptocurrencies or trade existing ones the opportunity to apply for a certification giving companies official state recognition. This means that the rest of Europe will now be playing catchup. The certification is to be granted by the French market regulator and issuers, traders, custodians, and investors will have to pay taxes on their profits.

The French Finance Ministry has reiterated the importance of transparency in this entire scenario and has also noted that those applying for certification under the new rules will need to be thorough in furnishing business plans, AML, KYC, and be clear about exactly who is conducting and overseeing the business. Any concern that chooses not to register could be left in a vulnerable position.