Could France Ban Anonymous Cryptocurrency?

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Ban On Anonymous Crypto

France’s Finance Committee: Ban Anonymous Cryptocurrencies

In a report released earlier today, the Finance Committee of France’s National Assembly has mentioned that it would be appropriate to prohibit all cryptocurrencies concentrated on supplying higher privacy to the user. The committee went on the compose that such cryptocurrencies assigned an increased risk of numerous monetary crimes.

The remainder of the report was not at all damning to the wider blockchain and cryptocurrency space. It specifies that a higher understanding of the technology and to the methods it is being applied were required by regulators.

Could France Ban Anonymous Cryptocurrency?

privacy coinsAs part of the report published today concentrating on blockchain technology and its application in cryptocurrency, the president of the Finance Committee of France’s National Assembly has actually specified that it would be suitable to ban all cryptocurrencies that enhance privacy for the user.

As reported by Forbes, Éric Woerth writes in the introduction to the document:

“It would also have been appropriate to propose a ban on the dissemination and trade in [cryptocurrencies built] to ensure complete anonymity by preventing any identification procedure by design… This is the case for a certain number of [cryptocurrencies] whose purpose is to bypass any possibility of identifying the holders. To date, regulation has not gone that far.”

Woerth makes it uncertain how far such a restriction on anonymity-focused cryptos would extend. He makes no distinction in between those that are private by default, such as Monero, and those that include optional privacy. As highlighted by the Winklevoss twins listing Zcash at Gemini in 2015, such coins are mostly believed to be more palatable for monetary regulators.

Could France Ban Anonymous Cryptocurrency?

Could France’s National Assembly try to ban privacy coins?

Also as part of the intro to the document, Woerth states a few of the problems provided by the rise in cryptocurrency usage. These consist of money laundering, tax evasion, and fraud, along with hazards to the environment postured by mining. (the current banking system uses MUCH more) Later on in the report, the committee does note that cash remains the most common technique for funding criminal activity.

France Not Hostile To All Crypto

In spite of a clear distaste for privacy-enhancing cryptocurrencies and their potential connection to criminal activity, the report does not take a hostile technique to the rest of cryptocurrency and blockchain innovation, just elements that look to impede law enforcement’s ability to authorities financial crimes. Wroeth goes on to discuss the importance of understanding and distinguishing between various applications of the innovation:

“The distinction between the different uses of [cryptocurrencies] must continue, to establish a finer and more precise regulation protector of the general interest, as well as the private interest of the entrepreneurs of this domain.”

The report concludes by specifying that greater efforts should be made to manage crypto’s on-ramps and promotes the forming of an international regulatory framework.

Featured Images from Shutterstock.

The post French Finance Committee: Ban on Anonymous Cryptocurrencies Appropriate appeared first on NewsBTC.

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