The latest country that is now looking to combat the reports of cryptocurrency tax evasion and money laundering in the cryptocurrency market in France. Bruno Le Maire, the finance minister of the country expressed his interest in a regulatory framework and new guidelines for the digital currency ecosystem.
France wants to regulate the bitcoin and other cryptocurrencies!
Governments all over the world are trying to control the cryptocurrency market, in response to which now France has appointed a “Monsieur Bitcoin” or Mr. Bitcoin, in order to develop a Gallic approach.
According to the finance minister, Le Maire, bitcoin along with other cryptocurrencies are being used among the tax evaders and terrorists alike at an alarming rate. Even in the past, the minister has publicly criticized the virtual currencies and tokens, several times.
He had been found saying:
“I don’t like it. It can hide activities such as drug trafficking and terrorism.”
Le Maire has ordered the central bank’s head to come up with a new regulatory framework for the cryptocurrencies. He also emphasized that there might be price speculation and financial manipulation in the market. The President of France, Emmanuel Macron holds similar views on cryptocurrency and likely supports the actions of the finance minister.
As mentioned by the finance minister in his early statement, the former Bank of France deputy governor and a Sciences Po economic professor, Jean-Pierre Landau will be leading the task force, developed to work with the risks around cryptocurrencies. Landau’s views on virtual currency have always been clear as he criticizes the cryptocurrency in being “unsuitable as a means of exchange.”
However, it is unlikely that the government will ban the bitcoins completely no matter the potential tax and legal implications for the French economy. In December 2017 itself, the finance minister had announced, the unlisted securities would be able to trade through blockchains. Furthermore, France has been researching the blockchain implementations and its benefits of public sector amenities that shows their financial innovations.
Other countries on Cryptocurrency regulations
However, France is not the only one in the European Union that is working for cryptocurrency regulations. Joachim Wuermeling, a member of the German bank Bundesbank board also supports these regulations as evident by his statement:
“Effective regulation of virtual currencies would therefore only be achievable through the greatest possible international cooperation because the regulatory power of nation-states is obviously limited.”
Le Maire has always openly advocated for cryptocurrency regulations, even at the international level. In December, he said he would propose a bitcoin discussion to the president of G20 summit, that is to be held in late 2018.
The primary concern for most of the countries is the use of cryptocurrencies in terrorism funding and tax evasion. Hence, until these issues are eradicated, such crackdowns by the government on cryptocurrency will continue to disturb the market.
Do you think it is the right step in response to the use of cryptocurrency in nefarious activities? Will it persuade other countries in taking similar steps? Let us know your thought in comments below and follow or write us on twitter and facebook page.
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