The economic minister of France, Bruno Le Maire, announced that they had created a working group for initiating the cryptocurrency regulations.
According to him, the group would be creating the guidelines as well as rules and regulations pertaining to cryptocurrency. He also added that the aim of the group is to create a proper framework with the help of which, the influence of Bitcoin, as well as cryptocurrencies on the formal economic system, can be reduced. He intends to reduce the possible diversions in the economic system like Bitcoin.
The aim of regulation in France is to prevent tax evasion with the cryptocurrencies
The group would be headed by Jean-Pierre Landau who is also being the Deputy Gov. of the Central bank of France. The aim would be to prevent tax evasion with the help of cryptocurrencies. Moreover, the group would also look to prevent money laundering as well as financing criminal activities with the help of cryptocurrencies. The finance minister of France has also shown his intention to cut the illegal activity in cryptocurrencies at the G 20 Summit in 2018.
According to him, there is plenty of evidence that some illegal activities are going on in the cryptocurrency space. Also, they are trying to regulate Bitcoin in order to ensure that tax evasion is not taking place in Bitcoins.
The Central Bank of France on Cryptocurrency Cegulations
The Central bank of France is also of the same opinion and is trying to regulate cryptocurrencies in order to ensure that there is no negative impact on the traditional financial system. France is one of the countries which are at the forefront of regulating cryptocurrencies in order to ensure that the impact of the cryptocurrencies on the formal banking system as well as the financial system is reduced.
Will regulations help to reduce the negative impact of cryptocurrencies?
Regulating the cryptocurrencies is necessary in order to ensure that the negative impact of cryptocurrencies, as well as the volatility in the prices of cryptocurrencies, does not impact the formal economy of those countries. The volatility in cryptocurrencies like Bitcoins is immense. This is one of the main reasons why governments, as well as authorities all over the world, are a bit scared about the impact of such cryptocurrencies.
With the help of these regulations and a proper framework, it would be easier for the regulators all over the world to keep the retail investors away from cryptocurrencies. Most of the retail investors do not understand the risk in cryptocurrencies. Most of them are just get lured by the high returns which cryptocurrencies are offering. This is one of the main reasons why regulators are rushing to create a proper framework in order to regulate the investment as well as users of cryptocurrencies.