Crypto regulations: the three objectives of the next French law are under construction

Cryptocurrency regulations extend to all of Europe, but France wants to strengthen its protection by creating its own laws. According to an initial study, three main objectives should be in the program of the text to come.

A new condition for the cryptocurrency sector?

Cryptocurrency regulations, especially the MiCa law, are the subject of real anxiety, both for the industry and for the authorities. However, despite all the protections that the latter offers to investors, it seems that France remains dissatisfied. Following the request of Senator Nathalie Goulet, the French government intends to impose its own rules.

To prioritize this future law, the Senate has just released a semblance of cryptocurrency inventory. This real appeal by Nathalie Goulet to regulate the sector, however, reveals the concerns of the authorities. In fact, three main lines emerge from the published document. The first concerns anonymity, which allows users to escape the surveillance of the authorities. Although the blockchain is less anonymous or secure than one might think, the government seems to want to regain control over user transactions.

Money laundering and crime are also issues covered by the upcoming law. For the moment, no solution has been proposed by the study. However, the French government could solve the problem through increased surveillance, including at the darknet level. The law will undoubtedly lead to the creation of new units. These would be responsible for monitoring possible criminal or terrorist actions within the cryptocurrency sector.

Recognizing cryptocurrencies as a government goal

If the first two points raised by the Senate are known issues and have been discussed a thousand times, the third remains more unpublished. Indeed, for the government, ignorance of cryptocurrencies is a real obstacle to regulations. This is what pushes the population to invest in fraudulent goods. Thanks to this ignorance, many crypto scams flourish.

Source: Nathalie Goulet’s Twitter account

Even more surprisingly, it would appear that European regulations are not suitable for the Senate. In advocacy, the shortcomings of the latter are widely questioned. Indeed, cryptocurrencies would not be considered at their fair value.

Despite a still extremely incomplete legal regime, one thing has been acquired: crypto-assets are not currencies! To quote the Ministry of Economy and Finance, “cryptocurrencies are not recognized as financial instruments […], cryptocurrencies are currently unregulated “. Furthermore, article 41 of law no. 2018-1317 of 28 December 2018 on finance for 2019 provides that, due to its lack of attachment to an institution and legal tender in a country, allowing the evaluation of its value, a cryptocurrency is not a legal tender.

Extract from Nathalie Goulet’s request regarding future French regulation

The government, despite its apparent harshness, could therefore work on a more adequate regulation for cryptocurrencies than that proposed by the European Union. However, France’s decision contradicts the warnings of the European Central Bank, which fears too great differences between the different regulations of its member states. The French law should therefore be implemented with respect to the MiCa law and, perhaps, improve it.

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