Last week, France brought in new laws that seek to bring order into the sometimes-chaotic world of cryptocurrencies. In doing so, it became the first major economy to put in place a comprehensive regulatory structure for the industry. But it’s not stopping there. Now, France wants other European nations to adopt and implement its crypto regulations.
Bruno Le Maire, the French Finance Minister, revealed the country’s intention yesterday according to a report by Reuters. Le Maire was speaking in the country’s capital of Paris during a blockchain event. He stated, “I will propose to my European partners that we set up a single regulatory framework on crypto-assets inspired by the French experience. Our model is the right one.”
While the European Union has long expressed its desire to regulate cryptos, it’s yet to do so. It has launched a feasibility study on the best way to go about regulating cryptos, but no individual nation has made major strides. The island nation of Malta has perhaps been the most progressive so far, with Switzerland also making strides. France’s push could thus be extremely important for the European crypto space.
France’s new law recognizes crypto officially. This is aimed at luring crypto companies to set up shop in the country, ensuring the government can tax their profits. Firms that want to issue cryptos or facilitate trading of existing cryptos can apply for an official license. The country’s market regulator will be in charge of issuing the licenses.
In implementing the law, the country hopes to benefit in more ways than just the taxes. It intends to be at the forefront of an emerging industry which most of the world is yet to get a hold on. In becoming the leader of this new industry, France could attract massive investment from global investors and help shape the digital future.
Under the new regulations, crypto firms will have to prove that they have adequate anti-money laundering and know-your-customer procedures in place. Intricate details of what’s required to get an operating license will be determined in due time by the regulators. While it may not completely cushion investors against losses, the French government will be able to protect them against fraud.
New to blockchain? Check out CoinGeek’s Blockchain for Beginners section, the ultimate resource guide to learn more about blockchain technology.