According to a report by Reuters France will push for the EU to adopt a cryptocurrency regulation using a regulatory framework on cryptocurrencies similar to the one it brought in last week at a national level.
The French parliament last week approved a financial sector law that included 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.
French Finance Minister Bruno Le Maire said in Paris at a blockchain technology event:
“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.”
France has passed a new Cryptocurrency Regulation law
In most of the world, cryptocurrencies are still largely unregulated. The French government’s new cryptocurrency bill earlier this week will allow firms that want to issue new cryptocurrencies or trade existing ones to apply for a certification.
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.
The target is for companies based in Paris to raise capital in this way, allowing France to grab a slice of the expanding business while giving it some government oversight.
The European Commission has recently launched a feasibility study on how to regulate the cryptocurrency markets, though no legislation is expected at least until late 2019 as the mandate of the current administration is ending.
Under France’s regulatory proposals, cryptocurrency regulation would allow authorities to verify who is behind a new coin’s issuance or a trading platform, and check the companies’ business plans and anti-money laundering rules.
The exact requirements companies need to abide by to get the regulatory stamp of approval are yet to be defined by government.
It should be noted that the certification will give investors basic guarantees against outright fraud, but will not protect them against losses so the asset class still retains some risk, but overall this is further positive news for cryptocurrency adoption as a whole.