The French Council of Ministers has approved a series of new measures to combat the anonymity of cryptocurrency transactions. Encrypted transactions prohibit the use of anonymous accounts, and stricter know-your-customer requirements must now be imposed. French Minister of Finance Bruno Le Maire (Bruno Le Maire) said that these changes are essential to combat the financing of terrorism.

France strengthens encryption surveillance

The French Council of Ministers approved a decree containing a series of measures and last week strengthened monitoring of cryptocurrency activities. The decree will come into effect within six months and will be submitted by French Minister of Finance Bruno Le Maire, Sebastian Leconou and Minister Olivier Dusopte.

La Maire said on Twitter on Wednesday: “We must exhaust all terrorist financing channels with the smallest euro… We submitted an order to the Council of Ministers this morning to make it possible to strengthen the struggle against the anonymity of crypto asset transactions. According to the press release issued by the three ministers:

This regulation strengthens the struggle against the anonymity of digital asset transactions by including digital asset service providers… among entities that prohibit keeping anonymous accounts.

According to local media reports, the measures of the regulations will be specified in the decree to be issued this week. All French cryptocurrency exchanges will need to be equipped with a stricter Know Your Customer (KYC) system.

Cryptocurrency exchanges must require customers to provide two identifications from the first euro spent instead of the previous minimum of 1,000 euros. The identification requirement will be SEPA transfer with ID. In addition, all exchanges, including those that do not provide legal trading pairs, need to be registered with a regulatory agency, which may be the French financial market regulator (AMF).

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However, the new requirements have raised concerns that non-European customers will not be able to register on French cryptocurrency exchanges because they do not have European bank accounts, thus depriving French startups of the qualifications to participate in the global cryptocurrency market.

Capital Publications quoted a minister as saying: “We are aware that this enhanced identification will have an adverse effect on the company.” She added: “Therefore, the law will come into effect in the spring.” Time must be kept.

What do you think of the new encryption measures in France? Let us know in the comments section below.

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