Investigation Confirms Cryptocurrency is the Future of France

France's Future Confirmed as Cryptocurrency

Author: BEN STRACK, translated by: Shanooba, LianGuai

With the passage of MiCA, cryptocurrency companies are entering the French market, with 40% of French Generation Z cryptocurrency investors reporting that they have entered this field in the past six months.

Youth investors driving the development of the French cryptocurrency market

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This year, a significant proportion of young investors have entered the cryptocurrency market in France. This trend coincides with major companies seeking to enter the French market under new regulatory policies. According to a survey released last Friday by the cryptocurrency exchange KuCoin, about 8% of internet users aged 18 to 60 in France are involved in the cryptocurrency field. The survey, conducted in May of this year, interviewed 500 adults.

Among these cryptocurrency users, 31% entered this field less than six months ago, while 23% have been investing in cryptocurrencies for more than three years. In particular, young investors have recently flooded into this market, with about 40% of French Generation Z cryptocurrency investors joining this field in the past six months. The survey found that although 60% of French Generation Z cryptocurrency users have an annual income of less than 35,000 euros, this age group still has a high interest in cryptocurrencies.

This finding is consistent with the trend presented in another KuCoin survey conducted in Germany in June. Among cryptocurrency investors in Generation Z in Germany, 41% started investing in digital assets in the past year, while 34% of millennials made their first cryptocurrency investment in the past three months.

Johnny Lyu, CEO of KuCoin, said in a statement, “Generation Z has bravely entered the cryptocurrency market, demonstrating unprecedented interest and adaptability. This young generation is not only participating, but also shaping the future of the cryptocurrency ecosystem.” Compared to older investors, more Generation Z adults seek the “quick return” brought by cryptocurrencies and use digital assets for NFT purchases and payments. This generation has a higher preference for Ethereum than other age groups, with 41% of them interested in this asset. Since early 2023, the prices of Bitcoin (BTC) and Ethereum (ETH) have risen by about 80% and 57% respectively.

Influx of trends into France after the passage of the MiCA Act

It is reported that many young investors have recently joined the cryptocurrency market in France, a trend that occurred when the European Union’s landmark Markets in Crypto-assets Regulation (MiCA) was passed in April of this year and many companies sought approval in France prior to this. The regulation requires cryptocurrency service providers to register with national agencies to provide services to EU clients.

Cryptocurrency exchange OKX revealed in May that it has submitted an application to the French Financial Markets Authority (AMF) and the Prudential Supervision and Resolution Authority (ACPR) to become a registered Digital Asset Service Provider (DASP).

In its May news release, OKX stated that France provides a “sound and transparent regulatory framework.” The company also added that due to France’s large number of cryptocurrency enthusiasts, experienced traders, and qualified workforce, France has become the company’s center in Europe.

Last month, CACEIS Bank, jointly owned by Crédit Agricole and Santander and managing around $50 trillion in assets, registered as a French Digital Asset Service Provider (DASP). Recently, SG-Forge, a cryptocurrency subsidiary of Societe Generale, announced on Tuesday that it has obtained approval as a French DASP. A spokesperson told Blockworks that this is the “highest level of regulatory certification currently available for operations involving digital assets.”

In a statement, SG-Forge stated that they expect the full implementation of the MiCA regulation by the end of 2024.

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