The government of France is introducing a raft of new legislation governing the cryptocurrency sector, including tougher (KYC) Know-Your-Customer rules for digital currency transactions. The French finance ministry has reportedly been working on proposals for a stronger regulatory regime. The new regulations will see crypto-to-crypto exchanges regulated for the first time, as well as more stringent measures for crypto-to-fiat exchanges and other service providers. European countries have been issuing new guidelines to regulate the cryptocurrency industry for some time now.
French finance minister backs the proposal seeking to prevent anonymous crypto transactions.
Several government ministries recently issued a decree to prevent anonymous crypto transactions by banning anonymous digital currency accounts. The order is pursuant to Article 203 of the PACTE law and is backed by finance minister Bruno Le Maire, overseas minister Sébastien Lecornu and junior economy minister Olivier Dussopt. Under French law, decrees do not require parliamentary approval, so the measures are expected to become law immediately. “The government wishes to promote the development of crypto assets under the best conditions of security and attractiveness,” the ministers said.
“We must drain the euro from all terrorist financing channels.”
Regulations around crypto-to-crypto exchanges normalize their regulatory standing, bringing them in line with other crypto exchanges and custodians in France requiring licensing. The statement specifically pointed out the arrests of members of an alleged terrorist group that was reported to be financing itself with cryptocurrency. In a tweet, French finance minister Le Maire said, “We must drain the euro from all terrorist financing channels.” Crypto regulations in most countries remain in a grey area as lawmakers continue to figure out new regulations for the growing industry. As reported earlier, the Internal Revenue System has made the crypto tax form-based question much more prominent to ensure everyone answers.
Nous devons assécher au moindre euro tous les circuits de financement du terrorisme.
Avec @SebLecornu et @olivierdussopt, nous avons présenté en Conseil des Ministres ce matin une ordonnance permettant de renforcer la lutte contre l'anonymat des transactions en crypto-actifs. pic.twitter.com/P7ywhoS9Dp
— Bruno Le Maire (@BrunoLeMaire) December 9, 2020