New Law Allows French Insurance Markets To Invest Into Cryptocurrencies And Token Assets
New Law Allows French Insurance Markets To Invest In Cryptos
Recently, the French government passed a Pacte Law that will allow life insurance companies to invest in cryptocurrencies.
The Plan d'Action pour la Croissance et la Transformation des Entreprises (PACTE – Action Plan for Business Growth and Transformation) is a new step in France’s economic transformation. From creation to transfer, companies are overburdened with obligations that complicate every step of their development. The PACTE will remove such obstacles, simplifying business creation and easing obligations concerning workforce thresholds.
Essentially, the French government wants to increase business development and this bill will do so. With the Pacte law, these companies will be able to invest in digital assets with no limitations. Reuters reports that 147 members voted for the bill with 50 against it.
Distinctly, a dual provision” of the bill suggests these companies can move into crypto via “specialized professional funds”. Furthermore, they’ll be able to offer life insurance policies through Bitcoin (BTC) and other assets. This is the first offering of its kind to exist in France. The government also thinks that it will be a popular provision.
Joel Giraud, deputy and budget manager of Emmanuel Macron’s party La République En Marche, has also confirmed that the act allows insurers to invest in crypto through specialized professional funds, and enables them to provide life insurance policies in relation to crypto. Basically allowing insurance companies to invest in crypto
“was not the primary objective of the Pacte, but insurers will be able to offer products based on crypto assets. They will be able to do so through specialized funds,”
Notably, the group had been discussing these implementations for 18 months. Another accessory, article 26b, ensures that any “property subject to registration in a shared electronic recording device” will be a part of the assets for a specialized professional fund (FPS).