Bitcoin crackdown: France plots to regulate cryptocurrency

Bitcoin crackdown: France plots to regulate cryptocurrency

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FRANCE is the latest country to attempt to curb the rising popularity of cryptocurrencies, as the French finance minister calls for tough new regulati

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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 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.

Joachim Wuermeling, a member of the board of Germany’s Bundesbank has said however, that national rules may find it hard to contain global cryptocurrencies.Mr Wuermeling said: “Effective regulation of virtual currencies would therefore only be achievable through the greatest possible international cooperation, because the regulatory power of nation states is obviously limited.”

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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Despite these new rules China is still exhibiting activity in the cryptocurrency field.South Korea is also toying with the idea of banning virtual currency exchanges.

European Union legislators agreed last month on stricter rules to prevent money laundering and terrorism financing on exchange platforms.

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