Is BTC legal in France (see also doublegeek.fr)? The French government has presented the first laws to regulate the trade in crypto currencies. At the same time, Paris is calling for its proposals to be used as a basis for EU-wide legislation on Bitcoin, ICOs and more. The objectives are investor protection and the possibility of levying taxes.
The Grande Nation France wants to show itself as a pioneer in the regulation of crypto currencies and has already passed the first laws. The news agency Reuters reports that Paris is primarily concerned with introducing a certification process for crypto exchanges, ICOs and other relevant components of the crypto market. On the one hand, this is intended to protect investors from fraud and, on the other, France wants to tax cryptographic transactions. “Our model is the right one,” said Finance Minister Bruno Le Maire. He will propose to the EU partners to use this model as a basis for an EU-wide regulation of investments in crypto currencies. Currently BTC is extremely bullish, reas more at Linuxhispano.net.
How will France regulate the cryptographic market?
Paris points out that so far none of the leading industrial nations has a solid legal basis for the cryptographic market. At the heart of the laws, some of which have already been passed in parliament, is the fact that the French regulatory authorities are first carrying out a background check on ICOs, the approval of crypto exchanges and similar projects. Business plans and compliance with anti-money laundering laws, for example, are to be checked. This would protect offshoots from gross fraud, as permission to operate in France would only be granted after the check. At the same time, this secures access to taxes on profits generated by cryptographic transactions. Paris also calls its initiative an incentive for start-ups in the crypto industry to choose France as their location because a regulated environment there will ensure legal certainty and investor confidence in the future.
How far along are the EU and Germany in regulating cryptographic markets?
Brussels is aware that the growing cryptographic markets need a uniform EU regulation. But the current Commission has postponed the topic until after the European elections and, as we know, the EU mills do not grind really fast. In Germany, the German government had recently invited to online consultations on the subject of blockchains, which have now come to an end. In Berlin, a blockchain strategy will be presented in mid-2019 and it has already been announced that it will not wait for the EU on topics such as ICOs or Bitcoin futures, but will create the first laws on its own.
Regulation of crypto currencies – curse or blessing?
Anonymity and decentralisation aka deregulation are the main pillars of the original Bitcoin (BTC) concept and continue to be important factors for at least part of the crypto community. On the other hand, it is clear to all market participants that only regulated environments will attract new investors such as cautious private individuals and large institutional investors and give the crypto market new momentum.
- To some extent, the discussion at EU level is similar to that about sports betting, where smaller countries score points with offers that Germany actually does not want to see.
- Ideally, the larger countries will compete to find the best balance between security needs and an understanding of the innovative industry.
- It remains to be seen whether Paris will actually be able to achieve a first success in practice.