Financial Crime World

French Guiana Implements Stringent Banking Regulations for Compliance in Cryptocurrency Sector

A New Era of Regulation

In May 2019, France implemented regulations regarding Initial Coin Offerings (ICOs) and intermediaries providing crypto-asset services under its PACTE law n° 2019-486. French Guiana, being a French territory governed by the provisions of the French constitution, falls under this legislation.

Key Features of the Regulation

  • Intermediaries, including custodian wallet providers and crypto/fiat exchange service providers, are required to register with the French Financial Markets Regulator (AMF) and comply with a set of rules.
  • ICO issuers may apply for an optional “visa” from the AMF, which gives them access to a bank account and allows them to solicit investment.

Regulation of Intermediaries: A Path Forward

Mandatory registration is required for intermediaries, including platforms and investment advisers, who may apply for an optional license. This license comes with additional regulatory requirements, depending on the activity carried out.

Balancing Regulation and Innovation

France’s cryptocurrency regulation is considered to be both easy to understand and not overbearing, allowing the country to welcome new technologies while maintaining a level of control. The Financial Action Task Force (FATF) revised its guidelines in October 2018 to recommend registration and licensing of all intermediaries in the crypto ecosystem.

Regulatory uncertainty persists globally, with few countries prohibiting cryptocurrency-related activities outright. However, most jurisdictions have yet to enact laws governing cryptocurrencies, leaving the legality of crypto mining unclear. Countries like Canada and the United States are relatively friendly to crypto mining, while others impose corporate income tax or remain uncertain.

Expert Guidance for French Guiana’s Cryptocurrency Sector

Freeman Law offers expert guidance on digital currencies, tax planning, and tax compliance in the context of French Guiana’s cryptocurrency regulations. Contact us now to schedule a consultation or call (214) 984-3410 to discuss your concerns about cryptocurrency and blockchain technology.

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