France could regulate cryptocurrencies to fight tax evasion and terrorism

Finance minister, France Bruno Le Maire has voiced concerns that cryptocurrencies such as Bitcoin are being used for hiding drug trafficking and terrorism.

He also says the cryptocurrency is by a risk of speculation which he does not like. Thus has moved to order central bank chief to come up with a regulation. However, to caution French users against risks of speculation and possible financial manipulation.

“There is evidently a risk of speculation,” he said. “I don’t like it. It can hide activities such as drug trafficking and terrorism.”

With many critics saying Bitcoin can be using for evading tax, many governments are concerning about this. If it materializes, the French regulation could also move in to stop this.

But while Bitcoin and cryptocurrencies have been marries by high financial speculations and volatility, governments’ regulations. Therefore the plans towards cryptocurrencies have been highly speculative too. Indeed, speculation about governments’ moves about crypto hasn’t helped much with cryptocurrency volatility. Many regulators are moving to this scene not just unprepared but also without plans at all. Since they are pressuring to do so in one way or another.

Also Read: French Government to allow trading unlisted securities on the blockchain

That explains why many regulators and governments are not only largely indecisive about the issue. Thus do not have any laid procedures to deal with the matter for the several years crypto industry has been. But also the many irrational announcements made about crypto especially last year. Although many have been moving cautiously towards the issue, there probably is no other time when there were many announcements from governments’ sectors about crypto than now — some departments even contradicting themselves within same governments.

It is unlikely that French regulation will totally ban cryptocurrencies although that’s speculation! The finance minister permitted unlisted securities to trade via blockchain technology, becoming the first country in Europe to make that move. He is quoting as having said he would push for a joint cryptocurrency regulation in the G20 arenas.

 “I am going to propose to the next G20 president, Argentina, that at the G20 summit in April we have a discussion altogether on the question of bitcoin”.

Many European governments also plan to crack down on all criminal activities that umbrella their funds via cryptocurrencies. Bitcoin and sibling cryptocurrencies have recently come under the spotlight for it increasing use in drug trafficking and terrorism and money laundering.

Read Next: Tobam French asset manager launches Europe’s first Bitcoin mutual fund

At an event, Joachim Wuermeling, a board member at Bundesbank said:

“Effective regulation of virtual currencies would therefore only be achievable through the greatest possible international cooperation. Because the regulatory power of nation-states is obviously limited”.

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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