As France continues to advocate for its regulatory certainty in the sphere of cryptocurrency, parallels are being drawn with the seemingly relentless efforts of U.S. regulators to control the burgeoning crypto ecosystem. New EU laws, dubbed MiCA, set to take effect in 2024 and existing crypto registration regimes have seen French officials adopt a bullish stance on their readiness for Web3, a concept that signals the next iteration of the internet and blockchain evolution.
The proposal of MiCA, the pan-European law intended to facilitate the operations of wallet providers and exchanges across the EU with a solitary license, is described by Marie-Anne Barbat-Layani, head of France’s Financial Markets Authority (AMF), as a progressive tool for enhancing regulatory requirements. This pro-innovation approach is a sharp contrast to the U.S. Securities and Exchange Commission’s (SEC) more litigious approach, which classifies crypto as a traditional financial instrument.
While the SEC has launched measures against notable crypto companies including Binance and Coinbase, alleging unregistered securities trading platforms and tokens, France has successfully positioned itself as a hub for crypto innovation. Binance and other big players have registered under its crypto law, PACTE. Meanwhile, Forge, the sector’s new contender and a division of the bank Societe Generale, has been granted its first ever crypto license by the AMF.
However, this regulated landscape doesn’t spare these entities from the sting of law enforcement as seen in Binance’s ‘aggravated money laundering’ investigation by the Paris public prosecutor, a move Binance seemed to approach as a learning curve of regulated operations.
Aside from regulatory certainty, France’s crypto environment also presents attractive technological competence for ventures like Ledger, whose foundational technology, the smart card – a French innovation, is far from being harnessed in the US.
France aims to extend its regulatory prowess to Web3-style games involving monetizable digital objects, referred to as JONUM. The purpose of the legislation, as put forward by the National Gambling Authority’s chair, is to set high-level objectives, such as child protection, leaving the elaboration of details to be negotiated with the sector. If enacted, the laws could cement France’s position as a leader in this space, according to Matthieu Lucchesi, an innovation and fintech specialist at law firm Gide255.
Though the high taxes, employment restrictions, and limited venture capital investment of France may cause discomfort for entrepreneurs, the country’s proactive legislative environment appears to be making strides in taming the unprecedented realities of the crypto world.
Source: Coindesk
