Bitcoin Foundation Requests Rejection of the “French BitLicense” Proposal In PACTE Bill

The Bitcoin Foundation of France has recently sent a letter to the French Parliament asking them to reject a new crypto asset amendment that is currently being proposed by the PACTE Bill, which talks about the growth and transformation of France’s businesses and employee savings. This amendment was suggested by La Republique En Marche (LREM), a social liberal party.

If the bill passes, it could allow the French government to adopt the recommendations of the “Landau Report”. The executive director of the Bitcoin Foundation, Llew Claasen, has affirmed that the amendment is wrong for the country and that it will leave it behind when it comes to the technological advancement of the blockchain in the country.

According to him, the amendment seeks to introduce a licensing requirement for any provider of digital assets which could include even non-financial use cases that use cryptocurrencies. He explains that the regime is too arbitrary and far-reaching and that it offers no certainty around the regulation on how to obtain a license, which could make it harder do it.

Also, he suggests that the creation of regulation would be more important is there was any real indication that cryptos are used for money laundering and terrorist financing, which there are no proofs of in his opinion.

As the regulation will be based on New York’s BitLicense, he claims that is could destroy fair competition and innovation in France, as this is what he believes that happened in New York after the bill was approved there.

Ever since BitLicense, he says, which was introduced in August 2015, only seven licenses were issued in the state and all by big organizations. The industry basically flew away from New York and the same will happen to France, he predicts.

Claasen really believes that Europe does not need any new crypto regulation, only a light hand and guidance notes that could make the desireable market behavopr clearer. This, he affirms, is because the blockchain is too new, so a legislation that is too rigid would be an awful idea for businesses.

The government, Claasen defends, should let time passes and understand the industry better before regulating it because it may get in the way of innovation and end up hurting the construction of this upcoming sector of the economy. According to him, most blockchains tend to be private, decentralized and P2P, which includes the absense of a regulating body.

Because of this, the man defends that crypto regulations have to assume that decentralized states cannot be so easily regulated like they would do with a juridical or natural person and that this is not a good idea.

Claasen affirms that these new networks are a completely different way of coordinating the economic activity and that the bad behavior of a few people in the ecosystem should not be used as the behavior of the whole market.

The Bitcoin Foundation was founded in 2012 and it has sought to bring people of the community together to build awareness regarding the benefits of the cryptocurrency networks.

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