The French Ministry of Finance has prepared a package of documents tightening the regulation and requirements for user identification (KYC) for cryptocurrency platforms.
In addition to tightening KYC requirements, the resolution proposes to ensure regulation of all cryptocurrency transactions, even without the participation of fiat currencies. The French cryptocurrency association ADAN has been granted access to the document as a “trusted participant” in issues related to digital assets.
According to ADAN President Simon Polrot, the recent terrorist attacks were the reason for the tightening of cryptocurrency regulation in the country. Thanks to digital assets, the financial support of terrorist groups, including in Turkey and Syria, is going on. Therefore, the French finance minister announced the need to tighten regulation.
“The government needs to take a certain position and need to do something to show the fight against terrorism,” said Polro.
A decree from the French finance ministry tightening regulation of the cryptocurrency industry is expected to be published on December 9 or 10. At the same time, the document does not require approval from the parliament.
At the moment, users of French cryptocurrency platforms must be identified only when conducting transactions with fiat currencies in the amount of more than 1,000 euros. After the publication of the decree, KYC procedures will have to go through users who make transactions worth more than 1 euro with any cryptocurrency.
Polro emphasized that no other jurisdiction has such stringent requirements for the identification of cryptocurrency users. The decree of the French Ministry of Finance also provides for the mandatory registration of any cryptocurrency exchanges operating in the country. Now the obligation is valid only for sites that provide trading services with fiat currencies and custodial services.
Recall that in early October in France, during a major police operation, 29 people were arrested, suspected of financing Islamist extremists in Syria using cryptocurrencies.
