Le Maire, who is the finance minister of France, believes that the usage of cryptocurrencies for the wrong reasons is increasing rapidly. According to him, many terrorists, as well as tax evaders, are using Bitcoin as well as other cryptocurrencies.
He believes that it is not a good idea to let the terrorists as well as other individuals, use Bitcoin is for unlawful purposes. He has asked the Central bank of the country to come with a proper regulatory framework which would avoid the usage of cryptocurrencies for such purposes. This would indeed make it easier for most of the people to use Bitcoin for only legitimate purposes.
At the same point in time, the usage of blockchain technology is increasing rapidly. In December 2017, the Finance Minister also announced that the unlisted securities would be trading with the help of blockchain. Thus, the Finance Minister is not against the legitimate use of blockchain of cryptocurrencies. It is only the illegal usage of cryptocurrencies which is actually a worry.
France has always been at the forefront when it comes to financial innovations. Also, there are quite a few other countries in the European Union as well which are looking to enact cryptocurrency regulations. One such country is Germany.
With the instances of Bitcoin being used to transact in drugs as well as other illegal substances, the authorities are trying to cover up the maintenance by making it compulsory for the individuals to disclose their identities in order to open the cryptocurrency exchange accounts. Moreover, it remains to be seen which new regulation is brought out by France in order to cover up the usage of Bitcoins in cryptocurrencies for illegal activities.
At the same point in time, many of the countries are initiating the steps to recognize cryptocurrencies as legitimate currencies as well. Two such countries are Japan and Germany. They have already incorporated plenty of mechanisms to accept Bitcoins.
With countries all over the world are trying to avoid the usage of cryptocurrencies for tax evasion, it remains to be seen the regulations which they come out with are. It is important to find out whether these regulations affect the legitimate cryptocurrency investors and traders or not. Only if they are not impacting the legitimate traders as well as cryptocurrency investors, it would be beneficial for all the stakeholders. Till then, the investors are always on tenterhooks as to whether the new regulations would limit their access to cryptocurrencies.