France has adopted a progressive approach towards cryptocurrencies, seeking to supervise and regulate this emerging sector while promoting innovation and the development of blockchain and digital assets.
It has been at the forefront of cryptocurrency regulation, seeking to establish a clear legal framework to govern this growing sector. In 2019, it passed a law to regulate token offerings (ICOs) and provide guidelines for token issuances. This initiative aimed to protect investors while providing a framework for innovation in the field of digital assets.
It established a regulatory framework for digital asset service providers (DASPs), covering cryptocurrency exchanges, digital wallets and other digital asset services. This regulatory framework aims to guarantee the security of users while promoting the development of a healthy and sustainable ecosystem for cryptocurrencies.
On the tax front, it also clarified its position on cryptocurrency taxation, providing guidelines on how cryptocurrency transactions should be reported and taxed. This clarification helped ease the concerns of investors and businesses operating in the cryptocurrency sector.
Alongside regulation, it has sought to encourage innovation in blockchain and cryptos. The French government has launched initiatives to promote research and development in the field of blockchain, as well as programs to support innovation and entrepreneurship in the digital assets sector.
Finally, it has been a key player in discussions at the European Union level regarding the regulation of cryptocurrencies, seeking to promote a harmonized EU-wide approach while taking into account the specificities of the rapidly evolving sector.