French Finance Minister Wants Unified Crypto Regulation for EU States

Wilfred Michael 

Wilfred Michael

News reporter

16 April 2019,
08:25
French Finance Minister Wants Unified Crypto Regulation for EU States

Instead of creating a separate regulatory framework for the cryptocurrency industry in their respective countries, the French Finance Minister, Bruno Le Maire is proposing a more unified framework for the European Union.

According to a Reuters report on April 15, Bruno Le Maire believes that the unified framework should be the set of rules which France released for the crypto industry last week. The Minister reportedly wants France to lead the push for other European states to adopt the new rules.

Speaking to the audience at a blockchain focused conference held on Monday,  Bruno Le Maire said,

“I will propose to my European partners that we set up a single regulatory framework on crypto-assets inspired by the French experience. Our model is the right one.”

As Stmarket.co highlighted last month, France’s regulation requires that firms planning to engage in the cryptocurrency industry, obtain licenses from the countries regulators. The regulation also allows the country to tax profits generated by startups, especially those who raise money through securities issuance.

It will further reduce cases of anti-money laundering and terrorist financing using cryptocurrencies since exchanges will now be required to enforce the relevant KYC procedures before onboarding users.

France hopes that by keeping an eye on the industry, it can provide a conducive atmosphere for crypto startups who wish to raise funds using the innovative model provided by blockchain technology.

The big question, however, is whether the other EU States would buy France’s idea of regulating a fast-evolving industry. Although efforts to regulate the industry on that continental level is yet to take off, an EU report in March noted regulation as one of the things that blockchain needs to become successful.

In the past too, both the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) issued separate reports urging the European Commission to provide rules for crypto space.

 

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