- France is looking to implement tough new crypto regulations, according to the president of French cryptocurrency association ADAN
- Simon Polrot told The Block that exchanges would face mandatory KYC regulations for all accounts and private crypto-crypto transactions could also be regulated
- The move echoes suggestions that the U.S. could be trying to implement something similar
France is preparing to bring in tough new crypto regulations that will involve tougher identity measures on exchanges and could even subject crypto-crypto transactions to Know Your Customer (KYC) checks. Citing an interview with Simon Polrot, president of French crypto association ADAN, The Block reports that the measures are being taken due to concerns over the illicit use of cryptocurrencies for things like terrorism funding, which is a concern France in particular has raised in the past.
Terrorism Incidents Highlighting Issue
Polrot told The Block that he had been informed by a trusted source within the ministry that several ministries were involved in discussions to dramatically increase regulation of cryptocurrency entities, including the Ministry of Internal Affairs and the Prime Minister’s Cabinet.
Despite recent reports stating that cryptocurrency plays only a small part in terrorism financing, heavily reported one-off incidents linking crypto to terrorism continue to undermine efforts to redress the balance. The most recent of these came in September when French police arrested 29 people who they suspected of helping to finance Sryia-based Islamist extremists using cryptocurrency.
U.S. Considering Similar Crypto Regulations
The precise details are of course still under wraps, but the concepts being discussed are in line with other crypto regulations being discussed by other countries. The U.S., for one, has spoken about the potential for private crypto-crypto transactions being subject to KYC, something that Coinbase CEO Brian Armstrong said only a couple of weeks ago could “kill” the crypto industry in the country.