France will try to convince some other member states of the European Union or EU to adopt crypto regulations, which will be similar to its own.
France pushing EU member states to issue crypto regulations
These days, France prepares to push the member states of the EU to issue their crypto regulations. This announcement has been made by Bruno Le Maire, who is the French Finance Minister. The decision happened on Monday in Paris, during an event on blockchain technology.
The Minister of Economy and Finance of France also stated that France is going to encourage other European Union member countries to adopt crypto regulations which will be similar to the ones of France, approved during the last week. The new rules have the purpose of attracting crypto issuers, as well as traders to France by providing them official recognition, while also taxing their profits in return.
The parliament of the country had just approved a new financial bill, which even included regulation of different industrial cryptocurrency parts. With this, France is going to be the first major country in the world to adopt such type of regulations nowadays.
According to financial analysts, this reflects the will of France to attract investors in the sector to locate their business in the country. It wants to attract those investors who always felt unconfident when it comes to investing in cryptos, with the latter lacking any regulations which grant them not to finish up scammed, while they are still going to have to pay taxes on the profits which they made with trading cryptocurrencies.
The new regulation bill of France
During the blockchain event in Paris, Le Maire said that he is going to propose to his partners from EU that they set up a single regulatory framework on crypto assets, which will be inspired by the experience of his country. He stressed out that their method of regulation will be the right one, according to his description.
According to the newly adopted regulation, crypto operators are going to have to apply for a certification which is going to enable authorities to verify who stands behind the issuance of the new coin or trading platform, also supervising business plans and AML or Anti-Money Laundering safeguards. The certification will constitute enticement to investors, in the shade of absence of a regulatory framework for crypto in most of the other countries around the world.
Moreover, last week, the National Assembly of France has adopted a bill which is actually designed to stimulate local business development, which includes redirecting savings from people to businesses. Better known as the “Plan d’action pour la croissance et la transformation des enterprises,” or Pacte, the act permits insurance providers in the country to invest in crypto with no limit on the amount of their investment.
Some other leaks about the new regulatory bill of the country are that the latter is going to cover investors against fraud, and they are not going to be compensated in case of loss. The government of France has still not unveiled requirements needed for registration a crypto-related business in the country.
EBA recommends further research on crypto
During March of this year, the legislative body of the government of Switzerland called the Federal Assembly, passed a motion to guide the Federal Council to adopt the existing legislation for crypto regulation.
The move actually has the purpose of closing perceived gaps in protecting crypto users from illicit activities such as money laundering and extortion.
In January the same year, the EBA or European Banking Authority recommended further research on crypto and is going to perform many actions relating to the sector during this year.
The EBA even said that it has the intention to issue paperwork to help authorities in the EU member states report financial activities in a more uniformed way. The organization also highlighted the need for transparency and suitable public warnings about the risk which are included with cryptocurrencies.