France approves new cryptocurrency measures to combat anonymous transactions

France's Council of Ministers has approved a series of new measures to combat anonymous cryptocurrency trading. Anonymous accounts on cryptocurrency exchanges are banned and they must now implement stricter know-your-customer requirements. French Economy and Finance Minister Bruno Le Maire said the changes were necessary to combat terrorist financing.

France strengthens cryptocurrency regulation

Last week, the French Council of Ministers approved a decree that contains a series of measures to strengthen cryptocurrency regulation. The decree was submitted by French Economy and Finance Minister Bruno Le Maire, Sébastien Lecornu and Minister Olivier Dussopt and will take effect in six months.

Bruno Le Maire wrote in a tweet on Wednesday: "We must cut off all terrorist financing routes, even if it is just a penny. This morning, we submitted a decree to the Ministerial Committee to make it possible to combat anonymous cryptocurrency asset transactions." The following is from the three ministers' press conference: "This decree will strengthen the fight against anonymous transactions in the digital asset field. The targets include banning digital asset service providers among individuals with anonymous accounts."

According to local media reports, several decrees will be published this week, and measures in the anti-anonymous trading regulations will be further clarified. According to the regulations, all French cryptocurrency exchanges must have a stricter real-name system.

Previously, cryptocurrency exchanges would conduct two real-name verifications after a user's transaction volume reached 1,000 euros, but in the future, users will have to go through this step when making their first transaction. The real-name system requires the provision of transfer records in the Single Euro Payments Area (SEPA) and personal ID documents. In addition, all exchanges (including those that do not provide fiat currency trading pairs) must register with administrative authorities, such as the Autorité des marchés financiers, the French financial market regulator.

However, this new real-name requirement will cause many people to worry that users outside of Europe will not be able to register on French cryptocurrency exchanges because they do not have European bank accounts, preventing French startups from participating in the global cryptocurrency market.

"We know that enforcing the real-name system will cause losses to companies," said the minister, quoted by French business magazine Capital, who said the decree would take effect next spring to give companies a few months to comply.