The new ordinance will continue to shackle KYC within bureaucratic rules that “date back to the Paleolithic era” commented a French Minister.

December 9 will be a forgettable date for crypto supporters in France and across the globe. On Wednesday various French ministries jointly issued an ordinance that banned anonymous crypto accounts and digital asset transactions. (COIN TELEGRAPH)

French ministers Bruno Le Maire, Sebastien Lecornu, and Olivier Dussopt signed off on the press release. They represent the finance, foreign, and economy ministries, respectively.

The ordinance makes it mandatory for virtual asset providers to verify their customers’ identities and also identify “beneficial owners.”

They are also required to prohibit anonymous crypto accounts and transactions. Moreover, crypto-to-crypto transactions will be subject to the same rigor as crypto-to-fiat transactions.

September 2020 terrorist arrests

The catalyst for the crackdown on cryptos appears to be the fallout from the arrests in September. These reportedly involved a terrorist financing network.

The criminals allegedly used digital assets to cover their tracks.

The ministers stated that the French government recognized that digital assets potentially presented significant opportunities for the economy.

Unfortunately, on the flip side, they came with the attendant risks from illicit financial activity. The Financial Action Task Force, the G7, and the G20 have, therefore, called for measures to prevent unlawful activities using crypto.

However, on a softer note, the statement said that the French government wished to promote the development of digital assets “under the best conditions of security and attractiveness.”

“New regulatory provisions will be presented in order to accelerate the launch of the market for digital identity solutions for digital asset transactions,” the ministers said.

“This will make it possible to fight against anonymous transactions in digital assets while facilitating the identification of users.”

Government panned for retrograde step

“It is regrettable that France is still distinguished within the EU by additional constraints,” said Pierre Person, an MP from the ruling La République En Marche! (LREM) party, as quoted by Bitcoin.com

“Why not instead put forward efforts to simplify KYC whose bureaucratic rules date back to the Paleolithic and are benefiting the existing banking [institutions]?” Person asked.

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