Bruno Le Maire, France’s Finance Minister suggests the European Union to consider adopting the country’s approach to regulating digital assets and crypto. France’s Finance Minister made the above suggestion while speaking at the ongoing Paris Blockchain Week Summit on April 15, 2019. Bruno Le Maire mentioned that he will propose to the European partners that they set up a single regulatory framework on cryptocurrencies and digital assets stimulated by the French experience. He added that France’s model of crypto regulations is the right one.
The Finance Minister’s comments continue to point to his change of standpoint concerning blockchain technology and crypto assets. It is to be noted that France has been pushing for the enactment of crypto regulations, since 2018.
Earlier in April 2019, the parliament in France passed into law, a set of rules for the country’s cryptocurrency scene. The regulations mainly covered licensure and tax regulations.
Interestingly, cryptocurrency brokers and token issuers will be able to apply to the country’s market regulator for operating licenses, based on the new regulatory framework. Furthermore, all the stakeholders including issuers, custodians, traders and investors, etc will have to pay taxes on profits made from dealing in digital assets and crypto.
For the country, the chief aim of the new regulatory model is to recognize industry participants. Apart from the KYC protocols, French regulators also desire to verify the identity of coin issuers and cryptocurrency brokers. They consider identity verification as a means of eliminating deceitful companies and fighting money laundering activities.
Notably, several stakeholders within the European Union have also acknowledged the requirement for a unified crypto asset regulatory code for the region. The aforementioned stakeholders say that such a move would eliminate the patchwork of digital currency laws. As per many, these laws might potentially generate regulatory arbitrage within the European Union member states.