France Urges E.U. To Adopt Same Cryptocurrency Regulation Laws
Last week France decided to push forward rules and regulations involving Bitcoin and other cryptocurrencies that aims to provide a framework for people to create and trade cryptos. Of course, the new rules would allow the French to tax the profits of anyone involved.
French Finance and Economy Minister Bruno Le Maire spoke on the issue in Paris today and said, “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.”
While it's hard to say if France has the best version of cryptocurrency regulation possible, it certainly has the best regulation in existence - because no other country in the world has issued framework guidelines for regulating Bitcoin and other cryptos, some countries have even banned them outright. France wants to offer certification to anyone trading, issuing, or investing in cryptos. Companies or individuals would have their plans reviewed and anti-money laundering checks would be employed as well which would help fight the narrative that cryptos have some inherent criminality due to their anonymous nature.
Cryptocurrencies and the lack of regulation
Bitcoin and its peers are often hit with the drawbacks of being unregulated - investors can't be assured of many basic fundamentals inherent in other types of securities and currencies. We are still very much in the "Wild West" days of cryptocurrencies and abuses are rampant.
For instance, Cornell Tech recently issued a paper that discusses how a new breed of specialized bots are targeting un-centralized exchanges. The arbitrage bots take advantage of "front running", that is, the firms employing them pay an additional or higher fee in exchange for getting orders executed faster, so they can wait to see orders from individuals traders. This would give some indication of price movement and then the bots will place orders that get executed before the orders from individuals.
Requirements are still being hammered out so there are still details to be filled out by the French. In general, this is a good development for cryptocurrencies and their supporters. While some want to keep the digital currencies in the dark away from governments, they simply cannot survive long term without institutional backing, which requires regulatory framework like the French are pushing forward. Should the E.U. embrace the French model, we could see other major nations get more serious about regulation, since they would be missing out on taxable profits.
Stay in the loop
GET A DAILY DIGEST OF LATEST TECHNOLOGY NEWS
Straight to your inbox
Subscribe to our newsletter