The French Finance minister, Bruno Le Maire, is encouraging other European countries to adopt a common regulatory framework on how cryptocurrencies or Digital Assets are to be regulated and taxed, similar to that recently adopted by France’s parliament last week. Known as the “Plan d’action pour la croissance et la transformation des entreprises,” (PACTE), it aims to provide cryptocurrency issuers and traders with official recognition through the application of a certification, thus encouraging them to set up in France while also ensuring the country can tax their profits. The specific requirements for obtaining a certification are yet to be defined by government decrees.
Currently, there is no pan-European legislation and regulations vary wildly from country to country within Europe. As more governments understand the disruptive impact that Digital Assets may have on their economies, we are likely to see more and more countries regulating Digital Assets in the attempt to encourage companies to invest locally, therefore grabbing a slice of this expanding business while providing investors with some protection.
The European Commission has recently launched a feasibility study on how to regulate the cryptocurrency markets, though no legislation is expected at least until late 2019.