France seems to be tightening its belt around crypto in recent times. It is currently planning to enforce rigorous regulations concerning crypto transactions, and more stringent KYC protocol.
Transactions Will now Require Full KYC Protocol
Sources close to the government say that this new set of regulations is likely to be rolled out this week. The Ministry of Finance would be aiming for full KYC (Know Your Customer) compliance from all crypto-related firms. The full KYC protocol would now be a compulsory requirement, no matter the size of the transaction to be done. Previously, it was only required for transactions that moved up to 1000 Euros.
This new set of regulations applies to all crypto exchanges and companies that deal with crypto. Any such company that wants to continue operating in the European country must comply fully with the rules. This also includes crypto firms who have French residents as their customers. Crypto traders and users must have at least a valid means of idenction issued by the government. These would be used during the KYC registration on their different platforms.
In addition, Exchanges that deal in crypto-crypto transactions must be registered with the Finance Ministry. However, such exchanges are given the grace of six months to meet up. As for crypto-fiat exchanges and those that keep crypto, they are expected to comply quickly.
Why is the Government Getting Stricter to Crypto?
The French government might be implementing these new measures to protect both its residents and the country. In September, 29 persons were arrested in connection with a terrorist attack. These were Islamist extremists who used cryptocurrency to fund the crimes Simon Polrot, president of ADAN, a crypto association says.
Days after the suspects were apprehended, France’s Finance Minister Bruno Le Maire, hinted on these rules. He said “cryptocurrencies pose a real problem of terrorist financing” and that the government strengthen its grip on it. Full KYC protocol would make it easier for the government to track down anybody who makes a crypto transaction. Since these transactions are usually anon on the blockchain, KYC would solve this problem to a large extent.