The Convention Act opens the door for French insurance companies to invest in cryptocurrencies
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Recently, French representatives have comprehensively revised the insurance law under the Convention Act, and Article 21 has opened the door for life insurance contract investment professional funds (SPFs). And because of another provision, the investment parameters of professional funds have been “relaxed”. Article 26 also gives professional funds (SPFs) investment blockchains the freedom to support assets. Simien Bernard-Alzias, a lawyer at Simmons, said in an interview with the local media Echo:
“With these two rules, SPFs can invest in cryptocurrencies and blockchains, which are written in black and white.”
At the same time, French locals have the opportunity to increase the value of their policies in the bitcoin bull market because there is no cap on the amount of encryption that can be held by a life insurance policy.
Bitcoin integration has been more than a year
Bitcoin did not enter the French life insurance market overnight, but policy makers and entrepreneurs worked together for more than a year, and finally led to changes in the rules. However, investing in cryptocurrency is a by-product of the update code, not necessarily the purpose. However, as France gains a first-mover advantage, this may create conditions for other jurisdictions to follow France. "Echo" quoted Congressman Joel Gillard as saying:
“This is not the main goal of the Convention Act, but insurers will be able to offer products based on crypto assets and will be able to do so through dedicated funds.”
Members of Congress also passed this measure in recent days, with 147 votes in favor, 50 votes against, and 8 abstentions. Although, this vote only reflects about one-third of the 577 seats in the conference. However, French Economy Minister Lemaire is satisfied with the results of the survey.
“I am very happy to pass the legal convention! The voting is very wide, thanks to the full support and work done by most people. We are determined to continue to change our economy.”
French people who prefer life insurance products
Even if it is indirect, it is a big deal to include crypto assets in the treaty bill. According to reports, the French life insurance market consists of 2.2 trillion euros of assets. Due to tax incentives, French residents tend to rely on these products for investment and retirement savings. In fact, the insurance policy reflects 40% of the financial assets of French households, exceeding securities, cash and other savings products.
The return rate of insurance products exceeds that of other savings products, so the French have recently shown great enthusiasm for insurance products. Since Bitcoin has gradually entered the market, wait for time to give the results.
Remarks: Bitcoin86 manuscript article, please indicate the source. The article is an independent view of the author and does not represent the standing position.