According to lawmaker Nathalie Goulet, the French Senate is expected to set up a new commission to investigate crypto assets due to the risk of "opaque markets" being linked to crime and financial instability.
Goulet, who is part of the third political group of the Senate Centrist Union, also pointed out that the senators do not have the necessary technological knowledge to navigate the crypto asset markets (MiCA) legislation recently passed by the European Union.
French Senate
In a letter published on the Senate website, the French legislator called for the establishment of a commission to regulate the use of cryptocurrencies in the country.
With the growing popularity of cryptocurrencies, Goulet highlighted the potential negative impact of their technology, stating that blockchain can foster crime because it "allows anonymity and favors opaque trade." Parallels have also been drawn between cryptocurrencies and the subprime mortgages that caused the 2008 financial crisis.
The letter read: “Crypto assets, thanks to the blockchain, pursue a simple goal: to make possible encrypted, anonymous, safe and transparent exchanges for users and above all opaque for the authorities. The total absence of regulation by a central authority allows users to completely escape the supervision of governments ”.
According to Goulet, there are many people who still don't understand the cryptocurrency industry and therefore cannot adequately address issues such as crypto asset market legislation. He said, "I'm not sure there are 10 senators today who can understand" cryptocurrency policy issues.
Additionally, Goulet talked about how cryptocurrencies facilitate the financing of terrorism and many other illegal activities. In particular, the senator has a long history as the leading security expert in France and recently wrote a book on the financing mechanisms used by terrorists, in which he noted that cryptocurrencies are increasingly used for money laundering activities.
Growing adoption
In terms of adoption, a joint survey by ADAN, KPMG and IPSOS found that 8% of French citizens have invested in digital assets, while 30% are open to entering the cryptocurrency market.
In fact, the percentage of French people holding cryptocurrencies has exceeded that of citizens holding Treasuries (6,7%) and IPSOS estimates that at least 12% of the population will own cryptocurrencies by the end of this year.
Last month, French lawmaker Pierre Person asked the government to recognize decentralized autonomous organizations (DAOs) and non-fungible tokens (NFTs) in its legal system.
In May of this year, the cryptocurrency exchange Binance registered with the Autorité des marchés financiers (AMF) as part of efforts to make Paris its European base. In addition to registering as a digital asset service provider (DASP) by the French market regulator, the company is also looking to obtain a formal license to open a regional office in the country.
