France to ask EU partners to adopt its cryptocurrency regulation

EUROPE NEWS


The certification will be granted by the French market regulator for those who want it, and issuers, traders, custodians and investors will have to pay taxes on profits they make on those securities.

The goal is to establish a market in Paris for companies raising capital in this way, allowing France to grab a slice of the expanding business while giving it some oversight of a niche which some fear could be a target for speculators.

The European Commission has recently launched a feasibility study on how to regulate the cryptocurrency markets, though no legislation is expected at least until late 2019 as the mandate of the current administration is ending.

On unregulated markets, where no rules apply, investors are left totally unprotected if things go sour.

Under France’s regulatory proposals, authorities would verify who is behind a new coin’s issuance or a trading platform, and check the companies’ business plans and anti-money laundering rules.

The specific requirements companies need to abide by to get the regulatory stamp of approval are still to be defined by government decrees.

The certification will give investors basic guarantees against outright fraud, but will not protect them against losses.



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