While much of the world is waiting on the US to come up with crypto regulations, which would allow institutions to enter the space, maybe the world should be looking at what France has already passed.
While France and the world are mourning over the recent fire in the Notre-Dame cathedral, the French Finance Minister, Bruno Le Maire, has been trying to persuade members of the EU to adopt the currency cryptocurrency regulations similar to France’s regulations.
“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.” -Bruno Le Maire
The legislation that France just passed, requires that cryptocurrency operators apply for a certification that allows authorities to be able to check business plans, comply with AML regulations, and determine who is the creator of a token or exchange. This legislation has finally passed after over a year of back and forth between policymakers and entrepreneurs.
“Very happy with the adoption of the law PACT! The vote is wide, thank you to the majority for your total support and for all the work that has been done. We are determined to continue transforming our economy.” -Bruno Le Maire
In addition, the regulation would allow the life insurance market (about $2 trillion) to invest up to 10% of the company funds into non-securities. One of the main reasons why this is important is that roughly 40% of all financial assets in French households are invested in insurance markets. The reason for this is because the returns in the insurance space have been better than other markets.
“This was not the primary goal of Pact, but insurers will actually be able to offer products based on crypto-assets. They will be able to do so through specialized funds.” Joel Giraud, Assemblymember