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France announces stringent crypto crackdown measures

France announces stringent crypto crackdown measures

France is implementing stringent measures against the country’s prevailing cryptocurrency sector. The French Ministry of Finance revealed extensive know-your-customer (KYC) obligations for all cryptocurrency companies operating in the country. The Finance Minister of France, Bruno Le Maire, directed all cryptocurrency providers to investigate and disclose cryptocurrency owners’ identification in an attempt to hinder the possible association of digital assets in terrorism funding.

France to forbid anonymous crypto accounts owing to terrorist funding.

According to a press release, the Minister elucidated in September 2019 that a terrorist unit endorsed various unidentified cryptocurrency accounts. According to a new document issued by Minister Bruno Le Maire, VASPs (virtual asset providers) in France will require to ban anonymous crypto accounts instantly. The Ministry emphasizes that registration is mandatory for global companies preparing to venture in to France’s cryptocurrency market. Moreover, the companies functioning with the current French regulatory framework are expected to recognize and validate profitable owners of cryptocurrency transactions.

France intends to strive against unknown digital transactions with the current KYC measures. Furthermore, complete KYC processes are in progress for all crypto transactions. This involves crypto-to-crypto transactions. Moreover, crypto traders would require government identification (ID). Furthermore, France’s prevailing applicable laws expect providers to implement KYC and AML rules, making it workable for exchanges to identify all crypto transaction recipients. 

Nevertheless, cryptocurrencies mainly remain unregulated in France. So far, two laws have been published, including the terms relating to the application of blockchain technology. Nevertheless, as emphasized by the French Ministry of Finance in a press release, the government has kickstarted a fact-finding mission. It is actively operating on enhancing its regulatory framework.

Apart from France, the European region has made prominent development in adopting digital assets. Christine Lagarde established the ECB President’s requirement for a central bank digital currency (CBDC) and suggested the digital euro launch in forthcoming years. However, the authorities over Europe scrutinized the application of privately-owned cryptocurrencies. It involves Bitcoin and Diem.

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