The cryptocurrency market may welcome its newest entrants at the start of the new week following the passage of the French PACT Act (Action Plan for Business Growth and Transformation) on Thursday, April 11.
According to FXstreet, the newly passed bill includes a section that allows insurance providers in France to provide their clients' exposure to cryptocurrencies through Professional Capital Investment Funds (PCIFs)
As a local news source, Les Echos, further explains, the new regulation opens the opportunity for citizens who sign up for life insurance policies at an insurance company to “transfer an old low-paying contract to another newer offering better returns, without penalty, but at the same company.”
FxStreet also noted there would be no limit to the amount of their portfolio that insurance providers can allocate to cryptocurrencies. In February, we reported that two U.S Pension funds invested in a blockchain fund with a majority of its portfolio targeting startups in the cryptocurrency market.
However, the primary purpose of France’s new bill was not to give insurance companies access to investing in cryptocurrencies.
Reuters reports that the bill aimed to kickstart a wave of privatizations in the French economy which will see the State sell its stake in ADP group, the country’s largest international airport. French Finance Minister, Bruno Le Maire further noted that the bill would not only help the economy but also prepare it for the future.
Meanwhile, the French crypto community continues to wait for the adoption of the country’s proposed regulations for the emerging industry.
Last month, we provided a review of France’s proposed crypto rules which the National Assembly could approve before the end of April 2019. That bill already passed its first reading in October 2018 and should be just enough to provide regulatory certainty for crypto startups in the European country.
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