French Financial Watchdogs Plans To Ban on Anonymous Cryptocurrencies
Eric Woerth, the head of the Finance Committee of France’s National Assembly suggests a ban on anonymous cryptocurrencies or so-called privacy coins. This assertion of Woerth was disclosed in a recent report on crypto assets and blockchain technology.
The report quotes that Woerth considers the introduction of a ban on digital currencies that provide greater anonymity to users:
“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] (Monero, PIVX, DeepOnion, Zcash…) whose purpose is to bypass any possibility of identifying the holders. To date, regulation has not gone that far.”
Woerth also went to address the possible problems associated with cryptocurrencies, including fraud, tax evasion, money laundering, and energy consumption. President purportedly added:
“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.”
Japanese regulators suggested similar measures in April of last year, that by preventing cryptocurrency exchanges from trading anonymity-oriented altcoins Dash (DASH) and Monero. An unnamed member of the country’s regulator the Financial Services Authority stated:
“It should be seriously discussed as to whether any registered cryptocurrency exchange should be allowed to use such currencies.”
The lower house of the French parliament rejected amendments to the 2019 finance bill, last December, which would have had eased crypto-related taxation. The parliament rejected four proposals in total, one of the amendments proposed to increase the annual volume of transactions that fall under tax exemption from 305 euro (around $341) to 3,000 euro ($3,359), or even 5,000 euro ($5,599).