France releases new treatment bill
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Last week, the French parliament approved a financial law that would address how to treat cryptocurrencies. This policy includes specific screening and management requirements for local encryption projects. Companies from all over the world can enjoy the new regulations of the bill as long as they apply for supervision in France.
After a thorough review, the company can obtain a certificate issued by the French government. According to the general outline of the new encryption bill, the information required for certification includes:
Personal background check of project founders and/or consultants
Business plan verification
Project AML compliance information
Multiplier pressure in other EU countries
The rest of the EU must respond to this. If they fail to meet or exceed the standards offered by France, it is possible to give the opportunity for technological innovation. If their standards are too high, investors may suffer losses.
In addition to commercial losses, other EU member states may also miss a batch of taxes because of the reduction in investors. If the project is registered in France and regulated by France, then France can tax the funds injected by investors. However, when investors and speculators gain capital gains, other countries can still get some income from the tax source.
The EU's regulatory reforms are expected to be introduced at least until the end of 2019.
What changes have this bill made?
The bill provides a clear path forward for projects seeking to raise funds through the sale of cryptocurrencies under the new cryptographic regulatory framework. Other governments have also provided a sandboxed environment. In fact, the regulatory model that France now offers is the first time since ICO was first released, and various encryption projects, investors and crypto asset enthusiasts have been asking the government. The EU does not have to fight alone.
Le Maire said last week:
“I will propose to my European partners that we should learn from the French experience and establish a unified regulatory framework for cryptographic assets.”
France strongly stated its position by supporting the direction of encryption as a viable technology and asset class. With a clear regulatory system, all participants in the emerging industry of crypto assets can benefit from it. (Source: MaxiMine)