A shot that could backfire
France has just declared war on Bitcoin, with its finance minister, Bruno Le Maire, publishing a decree that introduces oppressive rules to all cryptomaniac companies operating in the country.
Any company working with cryptomaps must implement the rules immediately to verify the identity of all users (KYC), in addition, all accounts without identification (anonymous) must be blocked. The communiqué was published on Twitter by the Minister of Finance, Bruno Le Maire.
„This demand, which emanates from actors in the ecosystem, will allow us to combat the anonymity of transactions in digital assets and, at the same time, facilitate the identification of users,“ said the minister.
In other countries, such as Brazil, the customer identification rule also exists, but in some companies only when a user moves a certain volume of digital currency. Thus, it is possible to move few volumes in some companies that do not require KYC, as in some P2P platforms or decentralized platforms.
In France, however, the rules will be stricter because it applies to all companies, regardless of volume, and the user will have to complete the entire registration already when creating the account (usually KYC is required when a user tries to withdraw high values).
The KYC rule in France was only required in crypto/fiat brokers and custodians of cryptomoedas.
The minister said the rule is a necessary action in France’s fight against terrorism. The press release cites a terrorist organization that financed itself with crypto.
„We must drain the euro from all channels of terrorist financing.
Several other countries already have their finger on the trigger to control the market. In recent days several world leaders have talked about the regulation of cryptomorphs. At the last G7 meeting, ministers and governors showed strong support for heavy regulation.
The G7 discussed policies of authorities to prevent the use of cryptomorphs in illicit activities.
„There is strong support from the G7 on the need to regulate digital currencies. Ministers and governors reiterated support for the G7 joint declaration on digital payments issued in October.
At the same meeting, German Finance Minister Olaf Scholz issued a harsh statement on Facebook cryptomime, saying the currency is „a wolf in sheep’s clothing.
Despite criticism of the government’s attempt to control cryptomime and monitor all transactions, the rulers defend themselves by saying that the main reason for the measures to come is to prevent terrorist financing through cryptomime.
„What we are trying to do in France is to fight the financing of terrorism through cryptoactics. But our overall goal remains to foster innovation,“ the source said.
Government is dumb?
Interesting, but at the same time curious, movement of world governments. Cryptomorphs are in essence decentralized, that is, the proof of censorship and control.
The government will probably „ban“ transactions to mitigate the action of people who use brokers, but those who use digital currencies anonymously will continue to do so, after all, this is one of the main objectives of cryptomorphs, to be able to make transactions without the government being able to control them.
Of course, the government must look for ways to combat terrorism and crime financing, but whoever uses crypto currency for this purpose is probably laughing at the new law. It may even benefit, since as the brokerage house will „close down,“ users will look for alternatives and end up finding decentralized platforms and P2P markets.
The shot could backfire.
Maybe it would be better to leave it open to identify the criminals, where they had control.