France is making an important step in order to become a blockchain and cryptocurrency leader in the European Union (EU).
The country has recently revealed that it will start to push for the EU to adopt a regulatory framework for cryptos that is similar to the one that France is adopting on a national level. The news was broke out by Bruno Le Maire, the Finance Minister of the country.
Last week, the French lawmakers approved a law that had the rules that crypto issuers would have to follow in the country. This new law would help the entrepreneurs and give them some official recognition at the same time that it would ensure that they could be properly taxes on their profits.
According to Le Maire, France will propose that the whole European Union should follow its example to set up a single regulatory framework. He seems to believe that the French model is the right one and he is ready to convince the policymakers of the EU of the same.
The new crypto bill of the French government is the first of its kind to be adopted by such a major country. One of its main objectives will be to allow companies to issue digital tokens and cryptos after they get a certification from the national government.
This contrasts with the regulation from the rest of the world. In more than half of the countries in the world, cryptos are either unregulated or completely banned. Countries that banned cryptos include India and China.
With a fully regulated market, companies and individuals will be able to trade cryptos in a completely compliant manner and they will have to pay taxes on their profit, which will benefit both sides.
Since many companies are using token fundraisers to get capital, France could grab a slice of this emergent market by effectively regulating it while giving it some oversight, which could help the market to run a more smooth course, in the opinion of the government.
European Union To Regulate Crypto Markets… Sometime
At the moment, the European Union has already started a commission in order to determine how these markets should be regulated. Unfortunately, no legislation should be expected before the end of 2019 and or even 2020.
The main advantage of having a regulated market is that investors can have additional protection if things go wrong. In unregulated markets, they just lose their money, which is deemed as undesirable by investors who actually got a lot of money that they do not want to lose.
If Europe decides to follow this new regulation, the authorities would have a legal oversight on any new token issuance and the platforms that do it. This way, they could check whether these platforms are compliant with the local laws and stop the sales in case they are deemed too dangerous or if they are a scam.
In this case, it seems that by accepting the regulation, the market would at least have some more protection against scams and similar shady business practices in the long term.
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