The Bank of France wants banking and other financial institutions not associated with the cryptocurrency business.
Earlier this month a report was published in which the Central Bank of France proposed to ban the participation of trust companies, banks and insurance companies in Deposit and lending activity, expressed in scriptactive. He also called for a ban on sale to the public of products and services that are related to the preservation of digital assets. The only exceptions are the most informed investors.
In addition to the overview of the technology and proposed strict regulations, the report also stated that digital currencies are not money and cannot serve as a legitimate means of payment. Instead, they were called a tool of cyber attacks, terrorist financing and money laundering.
In these scriptactive there is virtually no value. Their anonymity indicates that they will be used for criminal purposes (for sale of illegal goods on the Internet), as well as for money laundering and financing of terrorism.
The report also noted the recent price growth of the cryptocurrency assets, akin to the period of “Tulip mania” in the Netherlands from 1634 1637 in a year.
The Central Bank of France proposed regulatory framework, which refers to the need to take measures to combat money laundering and the financing of terrorism. This can be achieved by supplementing the fourth EU Directive to combat money laundering.
The Bank was also concerned about investor protection and cyber risks. He warned that the boom of activity in the field of cryptocurrencies could destabilize financial markets.
The first recommendation stated in the report – the regulation of the services offered on the border between scriptactive and the real economy. This means that the crypto currency exchange should be regarded as providers of payment services and must comply with the requirements of the legislation.
In turn, the Bank intends to continue to strictly control investment in digital assets, including the aforementioned ban on working with crypto-currency loans and deposits.
In addition, the Bank of France supported the proposal of the stock market regulator of France that cryptocurrency derivatives should not be accessible to ordinary citizens.
The report of the Bank was completed the call for global regulators to take action on an international level and to provide greater oversight of the cryptocurrency assets. The effectiveness of any action at the national level can undermine the lack of coordination.
Given the intangible nature of scriptactive and use of Internet technologies that facilitate the implementation of cross-border transfers, the diversity of national rules could impede comprehensive oversight of risks.
Earlier we wrote that the French financial regulator has begun to develop a legislative framework that recognizes the primary distribution of coins (ICO) legal way of investment.