Thursday, May 30, 2024

Does France Support Bitcoin?

In May 2022, France became the first country in Europe to approve the regulation of crypto giant Binance.

The legal status of various cryptocurrencies varies from one country to another. However, France, which is a part of the European Union, recently showed its support for Bitcoin along with other cryptocurrencies and has legalised the buying, trading, and exchange of coins.

Cryptocurrency in France

Cryptocurrency is not only legal in France, but it also has tighter regulations than any other country. Various cryptocurrencies, including Bitcoin, can instantly be bought or converted from Euro to BTC in more than 450 ways, including using popular payment options in the country such as Revolut, PayPal, ApplePay, gift cards, PCS Prepaid Cash Services, bank transfer, among others.

In May 2022, France became the first country in Europe that approved the regulation of crypto giant Binance, which was granted Digital Asset Service Provider (DASP) registration. This registration was a giant leap forward as it allowed Binance to operate its cryptocurrency exchange in the country. Apart from Binance, numerous crypto exchange websites and applications are functional in France and are user-friendly to both beginners and those advanced and well-versed in crypto.

The History of Crypto Regulation in France

The Regulation of cryptocurrency in France, Bitcoin specifically, began in 2011 and was first mentioned by TRACFIN (the French financial intelligence unit tasked with fighting financial fraud, money laundering, and terrorism financing).

The first French regulation of cryptocurrency then came in January 2014 through the Prudential Supervision and Resolution Authority (ACPR), the French banking and insurance regulatory authority, which stated that entities receiving legal currency on behalf of clients in relation to the purchase or sale of cryptocurrencies were required to obtain a license to provide payment services.

Cryptocurrency trading platforms and brokers were included in entities subject to the anti-money laundering legislation according to Article 2 of Ordinance No. 2016-1635, modifying Article L. 561-2 of the Monetary and Financial Code (MFC) as of December 2016. Within the same year, the French government started working on a legal framework allowing the use of blockchain for the registration of securities. Registration on a blockchain was first limited to short-term bonds dedicated to small and medium-sized enterprises (SMEs) but was soon extended to all unlisted securities pursuant to Ordinance No. 2017-1674, which came into effect on December 8, 2017.

What Exactly is Bitcoin?

Bitcoin is a cryptocurrency. A cryptocurrency is a digital or virtual currency (a system of money in general use) that works as an alternative form of payment created using cryptography (the use of encrypted algorithms) to secure transactions. Cryptocurrencies function both as a currency and an accounting system due to the mathematical concepts used in the encrypted algorithms. So, in simple terms, Bitcoin is a digital currency or money that can be mined, used, and exchanged digitally. Due to the encrypted data that make a unit of a coin, the cryptography makes it nearly impossible to counterfeit or double-spend the currency.

With Bitcoin, the currency (money) is mined (invested) or bought. The money (currency) is then monitored and organised by a peer-to-peer network called a blockchain, which further serves as a secure ledger of transactions for the buying, selling, trading, and transferring of the currency. This is in comparison to the money we generally use, which is monitored and controlled by the involvement of a third party in financial transactions in the form of one person, entity, or organisation.

How is Money Made from Bitcoin?

There are different ways to make money with cryptocurrency, but the most common way is for investors to buy the currency at a specific price, wait until the value increases, and sell at a profit once the market value rises. It’s more or less the same concept as stock trading and investments.

Can Bitcoin Be Exchanged for Cash?

Yes, Bitcoin can be exchanged for cash. However, this entails an exchange fee and taxation that a third-party broker will levy. In simpler terms, exchanging currency for money is similar to that of currency exchanged at airports. The conversion process must be done through an exchange or a broker at a set rate, and your money will be available for you to use.

Who Established Bitcoin?

Satoshi Nakamoto, an anonymous developer or group of unknown developers, established Bitcoin in 2009. Cryptocurrency has since become the most well-known currency in the world, as it inspired the establishment of many other cryptocurrencies. “I’ve been working on a new electronic cash system that’s fully peer-to-peer, with no trusted third party,” said Satoshi in October 2008. The primary purpose of the currency is to create an electronic payment system based on cryptographic proof instead of a trust. Bitcoin is now an alternative payment system and a way for people to send and spend money on the internet in an operative manner free of central control that functions just like traditional currencies.

As mentioned above, laws are country-specific when coming to the regulation of crypto. However, of all countries that have legalised the functionality of cryptocurrency, France has the most regulations. To learn more about Bitcoin and other cryptocurrencies, visit Bitcode Method— a reputable crypto news site that gives in-depth insight and guides on cryptocurrencies. It is the authority on Bitcoin, Ethereum, ICO, and Blockchain news, providing breaking newsletters, insightful opinions, market analysis, and regulatory updates. Use it as a resource to help you understand what you need regarding cryptocurrencies for your business and beyond.

Sam Allcock
Sam Allcock
Sam heads up Cheshire-based PR Fire, an online platform that has already helped over 10,000 businesses to grab widespread media coverage on their news at an extremely accessible price point.

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