FRANCE is the latest country to attempt to curb the rising popularity of cryptocurrencies, as the French finance minister calls for tough new regulati
FRANCE is the latest country to attempt to curb the rising popularity of cryptocurrencies, as the French finance minister calls for tough new regulations to stop cryptocurrencies being used to dodge taxes or to finance illegal activities.
Bruno Le Maire, French finance minister has instructed a former central bank chief to draft new potential rules regarding cryptocurrencies.
These new rules will also warn potential investors over the “risks of speculation and possible financial manipulation” linked to bitcoin and other popular cryptocurrencies.
The French finance minister is yet to release details of what the rules will be.
It comes as President Emmanuel Macron’s government urges internet giants to stop using tax havens, and calls Europe to be more aggressive on tax evasion in order to compete with the US and China.
Other countries are attempting to restrict the use of cryptocurrencies. China has banned initial coin offerings (ICO), shut down local cryptocurrency trading exchanges and limited bitcoin mining. An ICO is an unregulated means by which funds are raised for a new cryptocurrency venture.
China is home to the most bitcoin miners in the world but it is cracking down on the sector due to concerns about excessive energy usage.
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European Union legislators agreed last month on stricter rules to prevent money laundering and terrorism financing on exchange platforms.