France on the frontier of EU crypto regulations
The European region is not best known for its development of the cryptocurrency industry or the blockchain industry. While the financial regulator of the US, the SEC is working on defining the blockchain strategy, Asia is famous for crypto-exchanges, Australia is financing Blockchain projects and Africa is one of the leading continents when it comes to the adoption of cryptocurrencies European government seem to be less interested in it. The development of the crypto industry in Europe is going slower than in other parts of the world. However, the situation might be changed as France is starting to pay attention.
According to ForexNewsNow.com, the events that happened last week has put France on the cryptocurrency map. First, parliament has passed a bill which enables the government to adopt a new regulatory framework for crypto-assets. This Monday on the Paris Blockchain week summit the Finance minister of the country, Bruno Le Maire, announced that he will try to push other EU member countries to create a common set of regulations based on the French framework.
France’s first cryptocurrency bill
While other major countries have banned cryptocurrencies or still lack the proper regulatory framework for this industry the French cryptocurrency bill is one of the first of its kind. With this bill, cryptocurrencies have become recognized in the country. It also includes taxation, all of the profits made by crypto asset intermediaries will be taxed. But the most important part of the bill is the allowance for companies to issue new cryptocurrencies or trade with the ones that already exist. All of the crypto-related businesses, exchanges and providers need to register with AMF and get a license from the financial regulator of France to have a right to operate.
The certification will be given according to a few criteria. Crypto companies, traders, custodians and investors will have to pay taxes on profits. The government has not defined the specific requirements that companies need to have in order to receive certification or approval by the financial watchdog. Companies that fail to comply with the regulations will have to pay fines. However, crypto investors will not be protected in the same way as traditional markets investors. The certification does give some basic guarantees to investors against fraud, but it will not protect them against losses as there will be no reimbursement or investor protection fund.
France will be pushing other countries too
The goal behind adopting the regulatory framework for cryptocurrencies is quite simple. As reported by Reuters the French government wants to establish a new market in Paris where companies will have the possibility to raise capital. It will also give France an opportunity to profit from the expanding business.
Although it has been just one week since the adoption of the regulations the Finance Minister of the country is already claiming that France’s regulations are perfect. During his speech at the Paris Blockchain summit this Monday, Bruno Le Maire said that he will try to persuade other countries in Europe to adopt similar regulations. He stated that France’s framework gives some insight to European governments on how the regulations for crypto-assets should be developed.