New regulations to govern the crypto space in France are on the way after the regulatory watchdogs in the country indicated they are seeking to introduce additional regulations to the ones already in place.
Part of the new regulations will focus on the need for cryptocurrency exchanges handling fiat transactions to register with the country’s stock market regulator, AMF. According to Chepicap, “custodians of cryptographic keys” will also be required to register with the AMF.
Unregistered fiat-to-crypto exchanges will attract a penalty of 30,000 euros plus those responsible spending two years in jail. If enacted into law, unregistered entities will have a maximum grace period of 1 year.
Apart from requiring cryptocurrency exchanges to seek for registration, the new proposed regulations have put tokens in the same category as crypto assets that are “held and transferred on a distributed ledger and digitally registered and transferred asset incorporating nonmonetary units of value that can be transferred for acquiring goods and services,” noted Chepicap.
In the past, regulations have been seen as a way to cripple the cryptocurrency market. But as it has turned out all over the globe, checks and balances have to be introduced in this budding space so that a higher level of professionalism can be achieved. Additionally, regulations are necessary to remove the gray sections that have been the cause of conflict between financial watchdogs and players in the cryptocurrency field.
For the French government, clear regulations are necessary to ensure sound and professional market [crypto] practices and at the same time steer clear of “constraining frameworks that might deter innovation” and lower the French’s chances of being viewed as a favorable cryptocurrency market.
In April, France reviewed the tax levied on cryptocurrency profits down to more than a half in a bid to boost its attractiveness among cryptocurrency traders.
Even as the new regulations to govern the crypto space in France looms in the near future, do you think that regulations should not be too tight to inhibit innovation and not too loose to encourage unprofessionalism?
Let us know your thoughts in the comments section below.