France will push the European Union to embrace a regulatory framework for cryptocurrencies similar to the one it implemented at a local level last week.
On Monday, French Finance Minister Bruno Le Maire said, “I will propose to my European partners that we set up a single regulatory framework on crypto-assets inspired by the French experience,” further suggesting that the French design is “the right one.”
As reported by Reuters, the new law, which was passed by the French Parliament, consists of “rules aimed at tempting cryptocurrency issuers and traders to set up in France by giving them some official recognition, while ensuring the country can tax their profits.”
With this new bill, France will become one of the first major nations to pass regulations that would certify companies wanting to trade in cryptocurrencies or create new ones.
According to Reuters, “the certification will be granted by the French market regulator for those who want it, and issuers, traders, custodians and investors will have to pay taxes on profits they make on those securities.”
Furthermore, as part of this new bill, the French government will “verify who is behind a new coin’s issuance or a trading platform, and check the companies’ business plans and anti-money laundering rules.”
This new bill will also allow French life insurance providers to invest in special professional funds (SPFs), which can now capitalize on blockchain-backed assets.
The French government believes this is a sound way to build a market for companies looking to invest in cryptocurrencies while, at the same time, acquiring a cut of their profits and regulating an industry that is deemed by many as problematic.
France Also Wants to Lead the Way in Blockchain
Speaking prior to the launch this week of the Paris Blockchain Week Summit, Le Maire also announced that France wants to be at the forefront of the development of blockchain technology and looks to invest close to 4.5 billion Euros in this nascent industry.
As reported by Marie Huillet for Coin Telegraph, the French government plans to boost its tech policy via “the implementation of blockchain in French industrial sectors, funding innovative blockchain projects and supporting these projects in regard to legal and regulatory issues.”
Le Maire said, “Over the next five years, the state will invest €4.5bn [£3.9bn] in breakthrough innovations, including blockchain technologies. It is an important commitment. The goal is to take a technological lead to be able to fight, French and European, against the Chinese and American technological giants.”
Karim Sabba, who is one of the co-organizers and hosts of the Paris Blockchain Week Summit, believes corporate France is ready to fully embrace blockchain technology.
Talking to Darryn Pollock for a Forbes article, Sabba said, ““From our experience, we have seen an extremely positive attitude to adopting blockchain technology from corporates in France.”
“Corporates such as HSBC, BNP, and the four major public auditing firms are all members of the French Digital Asset Association reflecting their drive to both understand blockchain technology and implement it in the right ways,” he added.
Sabba believe the government is also well aware of corporate interests, and this is reflected in the approval of the new regulation governing cryptocurrencies and blockchain technology.
Sabba said, “We are fortunate that this drive has also been reciprocated in government. We have very forward-looking members in parliament such as Jean-Michel Mis and Laure de La Raudière who have been pushing forward legislation to accelerate the adoption of blockchain technology. The recently passed PACTE law is going to make it even more attractive for corporates to start experimenting with the technology as they will now have a regulatory framework with which they can comply.”
Any thoughts on how a pan-European regulatory framework for cryptocurrencies would be received? Is it ultimately feasible?
Let us know below!