French finance committee has been in the forefront of promoting cryptocurrency regulations in France. In a report that was published yesterday, the France National Assembly committee stated that it OK to ban al cryptocurrencies that are focussed on provider a great degree of anonymity to the users. The finance committee also went ahead to state that such a measure is importance since most of the cryptos that fit that description increases the risk of financial crimes.
Anonymous Cryptocurrencies Could Soon be banned in France
According to the French finance committee, anonymous cryptocurrency can be used to carry out crimes such as money laundering and financing of terrorism as personal details of the users cannot be revealed or traced once the transaction is complete.
The report also went ahead to state that the financial regulators in France need to have a deeper understanding of the technology used by the crypto companies and how it is applied to succeed in regulating the industry. If the committee report is adopted by the national assembly, all cryptocurrencies that offer complete anonymity to the extent that the regulator cannot identify the users and procedure used to do the transactions will not be welcome to do business in the country.
One of the shortcomings in this report is that it does not provide clear details of the degree of anonymity that the cryptocurrencies be required to offer. It does not differentiate between cryptocurrencies that are private by default such as Monero from the rest.
In the introduction section of the report, Woerth takes note of the various issues that cryptocurrency use poses to the financial sector such as fraud, tax evasion, and money laundering. It also introduces a new challenge, environmental impact of cryptocurrency mining activities. On the flip side, the report takes note of the fact that cash is and remains one of the most common methods used to finance criminal activities not only in France but also across the globe.
France Not Opposed to All Cryptocurrencies
Even though the report does pose a significant danger to cryptocurrencies that promote privacy, it is important to note that France is not hostile to all cryptocurrencies. The main objective of the committee is to introduce regulations that will mitigate the risks and it is not possible to do that with some cryptocurrencies that do not reveal deals of the users and transactions done.
It is no secret that cryptocurrencies need to be regulated to ensure that no criminal elements take advantage of the technology. However, the regulations need to be well thought out to promote growth of the industry. Check out more cryptocurrency news here.