Whilst it was widely speculated that France was putting a ban on anonymous cryptocurrency transactions and tightening KYC requirements, the country’s officials have stepped forward to clarify what they will be doing.
On this note, the country has said it has no desire to curb innovation. In an ordinance published in the Official Journal, France has rolled out its KYC requirements to crypto-only exchanges. Moving forward, crypto exchanges in the country must request two forms of identification, including a bank account, to service customers who need even a pennyworth of Bitcoin.
Exchanges have about six months to comply with the directive. The new restrictions are coming after officials fingered digital assets as an easy tool for terrorist financing.
According to a source as the Ministry of Finance, cited by local media, “Bruno Le Maire has sent a strong message against terrorism, but he has no desire to curb innovation in the blockchain sector.”
There are already loopholes in the new restrictions such as the inability of non-European customers of French platforms to register. Apparently, they will no longer be able to use French crypto exchanges without a European bank account or SEPA transfer. Authorities have noted this problem and are looking for a way to work past it.