France is asking the rest of the European Union to follow in its footsteps regarding cryptocurrency regulation.
France Leads Europe into the Crypto Dawn
Last week, France introduced a national framework on digital currencies, becoming one of the first countries to do so. French Finance minister Bruno Le Maire said on Monday:
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.
Regulation in France appears relatively keen towards cryptocurrency. The laws, as they stand, “tempt” cryptocurrency issuers and traders to do their business within the country’s borders. In return, they’ll garner official recognition by the public, while their countries of origin have the right to tax their profits.
This is the first law of its kind to be adopted by an internationally-recognized government. Companies that either want to issue new crypto assets or trade old ones must apply for the proper certification before they can engage in business transactions.
Throughout most of the world, cryptocurrencies are either outright banned or completely unregulated.
Any certification being sought by a cryptocurrency-based business must be issued by French market regulators. Furthermore, investors, traders and issuers will all be taxed on whatever profits they garner from the securities they sell.
France says it wants Paris to serve as the world’s next major crypto hub. Officials see cryptocurrencies as a new and revolutionary way for businesses in France to garner capital while allowing its government to gain new information regarding how the cryptocurrency space works. This will give it a huge advantage over other countries. Regulators further state that they are hoping to end speculation surrounding cryptocurrencies and their respective technology.
At the time of writing, the European Commission has launched a study regarding the feasibility of regulating digital assets. However, legislation has not been firmly established, and isn’t expected until late 2019 after the present administration ceases.
Under its new proposals, France would have full authority to verify and examine which companies are issuing new coins and establishing trading platforms. They would also have the power to examine companies’ business plans and enforce strict anti-money laundering tactics should these companies lack proper protocols.
Other Problems at Hand
At press time, the rules regarding earning the proper certifications are not fully understood, though the certifications give companies basic protection against elements like fraud. They remain, however, completely unprotected when it comes to losses, which means these companies are likely to remain vulnerable to hackers.
It is unclear if the country will hold off on present regulation for the time being as it works to rebuild the centuries-old Notre Dame Cathedral. The notable landmark – which took approximately 200 years to build – was engulfed in flames on Monday night, though authorities say there’s no evidence of arson.