France Pushing for Harmonised Cryptocurrency Legislation

France Pushing for Harmonised Cryptocurrency Legislation

Following the passing of cryptocurrency legislation in France, the country’s government has now turned its attention to the rest of the EU to follow in its footsteps. During the Paris Blockchain Week summit, French Finance Minister Bruno Le Maire strongly recommended that EU neighbours adopt France’s approach to regulating digital assets.

France has been working on creating a regulatory framework for cryptocurrency since 2018. The country’s efforts culminated in April 2019, when the government approved laws dealing with tax and licensing of digital currencies. According to Le Maire, France’s “model is the right one”, and he invited all EU countries to open a discussion about a single, French-inspired, cross border framework agreement.

The new laws will allow brokers of virtual currencies and create regulation for the issuing of crypto tokens, which will lead them to be able to obtain operating licenses from the market regulator. Another significant piece of legislation focuses on tax on revenue. As in other markets, every crypto transaction, whether performed by an issuer, custodian, exchange, or investment, will be subject to a tax on capital gains.

An important aspect of this regulatory framework is for the proper and safe identification of the users. The regulation requires improved know-your-customer (KYC) processes, together with verification of the identity of token issuers and brokers. In this way, the country’s legislators hope to step up the fight against money laundering and fraudulent entities.

The European Response

In a statement, the European Commission agreed with France’s suggestion of an EU-wide regulatory framework focusing on the cryptocurrency industry. However, progress between member states has been slow and inconsistent. Some member states, such as Malta, have already enacted several laws dealing with the industry, but other members have been slower in their actions.

Calls have been made for a unified cryptocurrency regulatory code for the bloc. Without such legislation, the EU runs the risk of having internal disagreements caused by different countries with conflicting virtual currency laws.

At the start of April, Margrethe Vestager, the EU’s Competitions Commissioner stated that the bloc does not need to wait for a global agreement on crypto matters and can push ahead with its own regulation. The Commissioner is known for being a strong advocate for implementing crypto legislation, particularly in the area of tax harmonisation.

Vestager, who was Denmark’s economy minister until 2014, has a reputation for standing up to tech giants. She, together with a growing number of Eurocrats, have put continual pressure on the likes of Google, Apple, Amazon, and others to pay their fair share of taxes.

There is the possibility that Vestager’s digital tax proposal, currently under review, will be modified to include cryptocurrency legislation. If it does, it may mark one of the world’s most significant developments in the industry, and will continue to push cryptocurrency into the mainstream market. 

Ready to join our tribe?

We respect your email privacy

Subscribe now to recieve exclusive updates and offers!

Recently Similar News

Latest Guides

Latest News


Cryptocurrency Market Cap Jumps Past $2 Trillion

Cryptocurrencies continue to make headline news around the world as the total market cap surpassed $2 trillion on Monday. Supported by increased interest from institutional investors, celebrities, and retail investors, digital coins are now worth more than Apple Inc. Bitcoin has, once again, played a major role in the sector’s market cap. The world’s first […]

6 April, 2021
Digital Currency,Ethereum,Stablecoin

VISA Set To Support Cryptocurrency Settlements

The global payments corporation, VISA, announced on Monday that it is making preparations to allow USD Coin (USDC) to settle transactions within its network. This move is being viewed by industry analysts as yet another clear sign that cryptocurrencies are being accepted by major institutions within the traditional financial industry. USDC was selected by VISA […]

30 March, 2021

CasinoFair Temporarily Shuts Down Amid Network Congestion

The popular cryptocurrency casino, CasinoFair, has announced in a recent blog post that it will be temporarily stopping its gaming services. Citing unsustainable congestion on the Ethereum network as the main reason for this pause, the casino reassured its players that it is “actively researching solutions and hope to be back with a new range […]

26 March, 2021

Significant Bitcoin Drops As Coinbase Announces IPO

The cryptocurrency market is back in turmoil following yet another volatile week where Bitcoin almost reached a record-breaking value of $60,000. Bitcoin drops are nothing new, but the recent 25% decrease has caused panic amongst even traders with an experience of major currency fluctuations. The latest drop comes as Coinbase, one of the world’s largest […]

1 March, 2021

Trezor Warns Users About Fake Mobile App

Trezor is warning users of a malicious mobile application featured on Google Play which appears to be associated with the wallet provider. At least 1,000 users have already downloaded this software, and it is likely that some have unwittingly provided their seed phrase to unlock their funds. Both Trezor and SatoshiLabs have confirmed the existence […]

26 January, 2021

eToro Temporarily Raises Minimum Deposit To $1,000

For the past few weeks, the increase in Bitcoin’s price has led to a massive interest in cryptocurrency trading. eToro has been overwhelmed by new registrations and has decided to temporarily raise the minimum deposit from $200 to $1,000. Although 2021 has barely gotten started, it promises to be an exciting time to invest in […]

11 January, 2021

Global Cryptocurrency Market Value Surpasses $1 Trillion

Thursday has proven to be a monumental day for cryptocurrencies as the world’s combined value tops the $1 Trillion mark. Energised by a substantial rise in the value of Bitcoin in recent months, the volatile crypto market has reached a once-unreachable value. Following the latest Bitcoin Halving in May 2020, the world’s largest digital token […]

10 January, 2021

Victory over virus: SiGMA Virtual Expo hosts 100+ exhibitors

SiGMA Europe and AIBC Virtual Expos launch with record breaking attendance, providing a cure to the industry’s events sector In the light of this year’s changes in our everyday lives, SiGMA was close to having to stop doing what it does best; creating networks for people through the company’s iconic physical events, but luckily, the […]

26 November, 2020