France to Implement Stringent Regulations on Cryptocurrency

  • Richard Marley
  • December 11, 2020
  • 2 minutes read
  • 1949

France is planning on regulations that abolish the anonymity in cryptocurrency. Financial authorities in France are taking strict action to secure the cryptocurrency in the country. This is done to eradicate illegal activities like terrorism financing and money laundering.

Many French ministers agreed to introduce a law to avert the anonymity factor in transactions of the digital currency. Now the anonymous crypto accounts will be banned.

Bruno Le Maire, the French finance minister, overseas minister Sebastien Lecornu, and Olivier Dussopt, junior economy minister have given their complete support for these new regulations. This regulation is an addition to France’s PACTE law, article 203. 

The ministers have agreed that the use of cryptocurrency and digital assets is an important opportunity for the country’s economic growth and the Ffrench government fully understands its significance. 

However, despite the opportunities, the cryptocurrency also opens a gate for illegal financial crimes, and law enforcement authorities are concerned about it. 

The ministers also reminded of the arrests of the terrorism financing network that utilized digital currency to fund the networks. They used crypto assets to hide their trace. FATF and other major regulatory bodies of the world have noticed the use of crypto assets in illicit financial activities and have laid out measures to take action against it.

The minister said, “The government wishes to promote the development of crypto assets under the best conditions of security and attractiveness.”

Due to this, the French government has planned on introducing the new regulations on crypto assets and to apply digital tools for the identification of crypto and digital assets’ transactions.

The document states: “This request, which emanates from actors in the ecosystem, will make it possible to fight against anonymous transactions in digital assets while facilitating user identification.”