April 16, 2019 | AtoZ Markets - France is purportedly preparing to push the EU states to issue their cryptocurrency regulations. The announcement was made by the French Finance Minister Bruno Le Maire on Monday in Paris at an event on blockchain technology.
The French parliament had just approved a new financial bill, which also included regulating some parts of the industry of cryptocurrency.
With that being said, France is the first major country to adopt such kind of regulations today, which, per financial analysts, reflects France’s will to attract those investors in the sector to set up their business in France, who always felt unconfident investing in cryptocurrencies, with the latter lacking any regulations that grant them not to end up scammed, while they will still have to pay taxes on the profits made out of trading cryptos.
“I will propose to my European partners that we set up a single regulatory framework on crypto-assets inspired by the French experience,”, came Le Maire’s word at the blockchain event in Paris, stressing that their method of regulation is “the right one”, as per his description.
The first of its kind in the EU with guarantees
The French government’s newly approved cryptocurrency bill will allow firms that want to issue new cryptocurrencies or trade existing ones to apply for a certification, which constitutes enticement to investors, in the shade of absence of a regulatory framework for cryptocurrencies in most of the other countries over the world.
On its turn, the European Commission has recently started a feasibility study on how to regulate the cryptocurrency markets, though no legislation is expected at least until late 2019.
The new French regulatory proposals give the authorities the space needed to find out and verify who issued a new coin and who runs a trading platform, and check what the companies’ business plans are and whether they comply with the anti-money laundering rules or not.
Other leaks so far about the new French regulatory bill is that the latter will cover investors against fraud, however, they will not be compensated in case of loss.
The French government have not unveiled requirements needed for registering a cryptocurrency-related business in France yet.