Posted 4 months ago | by @devadmin
The French Ministry of Finance has revealed rigorous know-your-customer (KYC) requirements for all crypto transactions.
According to a new document released by French Minister Bruno Le Maire, all virtual asset providers (VASPs) in France will now have to prohibit anonymous crypto accounts and cryptocurrencies.
The order allegedly inspired by the recent terror attack in France funded by cryptocurrency was presented to the Council of Ministers on Wednesday. The order stated that the requirements were recommendations from the Financial Action Task Force, the G7, and the G29.
French police previously arrested 29 people who purportedly used cryptocurrency to fund Islamist extremism in Syria, Coindesk reported. The G7 has recently expressed they are a strong proponent for hardcore regulation for the cryptocurrency industry. Specifically, the G7 nations said they are concerned about stablecoins, which could undermine the sovereignty of central banks.
In general, a spokesperson for U.S. Treasury Secretary Steven Mnuchin expressed there is a “need to regulate digital currencies.” Further, the statement “reiterated support for the G7 joint statement on digital payments issued in October.”
The previous statement, published on October 13th, expressed that the G7 all agreed that digital payment services “should be appropriately supervised and regulated to address challenges and risks related to financial stability.”
In November, Coinbase’s CEO, Brian Armstrong warned about a rumored U.S. Trump Administration plan to crack down on cryptocurrency.
The Coinbase CEO tweeted a thread criticizing the U.S. Treasury Department’s purported scheme to attempt to track owners of self-hosted non-custodial cryptocurrency wallets with data collection including know your customer laws (KYC).
If the cryptocurrency regulations in the U.S. do go into effect, as Bitboy Crypto warned from two insider sources in September, it would mean crypto businesses would be forced to know every person their users’ crypto transactions, keeping logs, and verifying identities (KYC) even before a transfer can go through for sending crypto.
It would also mean that decentralized finance (DEFI) would be dead in the water as it would be impossible for smart contracts to function in a decentralized manner with KYC required or integrated. What would be possible is a hybrid of DEFI and CEFI using crypto assets and blockchain technology as medium of exchange for lending and borrowing services. But that’s far too complex to get into in this article at this time.
We are now seeing France implement what was proposed in the U.S. still think it can’t happen here?
Bitcoin is currently trading at [FIAT: $18,194.43] DOWN -0.5% in the last 24 hours according to Coingecko at the time of this report.