Any transaction between cryptocurrencies will have to go through KYC. The Association for the Development of Digital Assets questioned the measures.
The government of France, through the Ministry of Finance, will raise the levels of regulation to any operation with cryptocurrencies. The authorities are preparing guidelines that apply to all firms in the bitcoin ecosystem and transactions between crypto-assets or from crypto to crypto.
The provisions would include new KYC (Know Your Customer) measures for companies that make life around Bitcoin and would establish a greater control in all transactions between crypto assets, according to statements by Simon Polrot, president of the Association for the Development of Digital Assets (ADAM).
Currently, the norm establishes that the operations of any cryptocurrency to fiat and that exceed 1,000 euros are those that must comply with the KYC parameters. Now the potential new regulation would not only cover these types of transactions but will also cover those of any amount between cryptocurrencies, no matter how small they are.
The new regulatory wave seems to be a consequence of the terrorist attacks that recently occurred in the European country, the executive reported in an interview with The Block.
Discussions are well underway, so the guidelines are expected to see the light this week. Other agencies such as the Ministry of the Interior and the Prime Minister’s office also participated in the discussions.
Pierre-Guy Bareges, CTO of Digital Service Group, also confirmed the measure and assured that he already received a notification from the authorities. Besides, he explained how the government’s interest in increasing its oversight would have started.
“One of the aspiring digital asset service providers let some people use the services to send money abroad, especially to Turkey and Syria, and then he faced an investigation by the security services,” Bareges was quoted as saying. the digital medium.
The director commented that the police led an operation to arrest these people. The law enforcement body claimed that bitcoin was a tool to finance terrorism, and then the finance minister declared that they need to create more regulations to control cryptocurrencies.
New Bitcoin Regulations in France
The KYC parameters in France will add the presentation of two identity documents that the government issued. The measures are not official at the moment, but they have already set off the alarms of companies that fear that users will leave them to look for better alternatives outside the country.
As they are part of a State decree, the new guidelines do not require parliamentary discussion. In other words, their application would come into effect once they are officially disclosed.
The new licenses of both, the fiat-crypto exchanges and the custodial services should apply by December 18. It is unclear whether foreign exchanges must also comply with the new regulations.
ADAN is a French organization that brings together renowned companies in the bitcoin ecosystem, among which are: ConsenSys, Chainalysis, Ledger, and Coinhouse.
France suffered several terrorist attacks in recent months. In October, an attacker killed three people with a knife in a cathedral in Nice. The incident occurred days after the beheading of Professor Samuel Paty, who had shown caricatures of the Prophet Muhammad to some of his students.
By: Jenson Nuñez.
