With the rising use of cryptocurrency, the risk of illegal activities rises, considering that the governor of the French central bank, Francois Villeroy de Galhau, has called for strict cryptocurrency regulations. France, however, is not the first country to propose such regulations.
Previously, Russia and India made several discussions about the legal status of cryptocurrency, but they have yet to conclude because regulating cryptocurrency is a challenging task that necessitates the cooperation of other countries. According to the insider, the law was proposed in response to the country’s increasing use of crypto assets. The EU recently proposed a similar law; however, no progress has been made on the regulations.
What Law has the French governor Proposed?
Francois Villeroy de Galhau, Governor of the Banque de France, suggested mandating full-fledged licenses for crypto entrepreneurs to operate in the country. The law, which appears to be good from the perspective of French lawmakers and administration, will undoubtedly have a bad impact on the current 60 crypto exchange platforms that operate in the country with minimal inspections.
According to the Business news portal Finance Feeds, one of the major reasons for the proposed law is the recent fall of the FTX exchange. The rollout date has not been disclosed because the law is currently being discussed among lawmakers and banks; however, according to some news reports, the law may come into effect in mid-2023 or at the end of the year.