{"id":10278,"date":"2022-04-23T09:48:53","date_gmt":"2022-04-23T09:48:53","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/macron-or-le-pen-what-promise-does-each-presidential-candidate-hold-for-crypto\/"},"modified":"2022-04-23T09:48:55","modified_gmt":"2022-04-23T09:48:55","slug":"macron-or-le-pen-what-promise-does-each-presidential-candidate-hold-for-crypto","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/macron-or-le-pen-what-promise-does-each-presidential-candidate-hold-for-crypto\/","title":{"rendered":"Macron or Le Pen: What promise does each presidential candidate hold for crypto?"},"content":{"rendered":"
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As France braces for the April 24 presidential election in a runoff, political pundits around the globe are making their bets. The choice is between the centrist incumbent Emmanuel Macron and right-wing populist Marine Le Pen. Much of the political debate this time revolves around economics, but there is one indispensable part of it that is largely absent from the candidates\u2019 electoral agendas: digital assets. While both have a record of public statements on matters related to crypto, neither Macron nor Le Pen seems to be likely to trigger any significant policy change with regard to the French digital economy.\u00a0<\/p>\n

State of the art<\/h2>\n

Despite the current administration\u2019s notable efforts to embrace the IT industry, France is still, in many ways, not a particularly tech-friendly country. For years, its authorities have been fighting in the avant-garde of the European regulatory cause against United States tech behemoths\u2019 tax \u201coptimization\u201d practices, such as opening European offices in more relaxed jurisdictions such as Ireland and Luxembourg. <\/p>\n

In the way of regulation, the country does not have a specific regime for crypto, but the general regulatory climate is rather harsh. The main legislation regulating the industry is the 2019 Action Plan for Business Growth and Transformation of enterprises, or PACTE. It obliges any crypto firms in France (legally defined as digital asset service providers) to register with the Financial Markets Authority (AMF) and to comply with the Anti-Money Laundering and Combatting the Financing of Terrorism (AML\/CFT) requirements set out by the European Union\u2019s Fifth Anti-Money Laundering Directive. <\/p>\n

Perhaps the biggest headache for the crypto industry is the strict Know Your Customer (KYC) policy, which sets no transaction value threshold for invoking reporting rules. In other words, every crypto transaction worth 1 euro or more requires a full KYC procedure, including the disclosure of the parties\u2019 full names, addresses and contact details.<\/p>\n

On the bright side, disciplined industry players have a chance at obtaining a special license from the AMF, allowing them to apply for French bank accounts. As Thibault Verbiest, a Paris-based partner at the law firm Metalaw, explained to Cointelegraph, French banks are reluctant to open bank accounts for crypto companies.<\/p>\n

Meanwhile, the central bank of France is actively exploring a potential central bank digital currency (CBDC).<\/p>\n

French regulatory activism<\/h2>\n

French officials play an active role in the international regulatory process. In February 2021, Robert Oph\u00e8le, chairman of the AMF, proposed consolidating all the power and responsibility for crypto regulation in the hands of the European Securities and Markets Authority. He also emphasized the crucial role of blockchain technology in the future of the European economy. The proposition was later repeated by the French government. <\/p>\n

Four months later, in June 2021, Bank of France governor Fran\u00e7ois Villeroy de Galhau doubled down on the call to create a pan-European crypto regulatory framework as soon as possible. In contrast to Oph\u00e8le, de Galhau\u2019s perspective on the matter sounded far less friendly.<\/p>\n

Stressing the threat of crypto eroding \u201cmonetary sovereignty,\u201d he estimated that Europe had only one or two years to solve the problem. The EU regulators responded with some major initiatives, such as stepping up work on the Market in Crypto-Assets regulatory framework and the current Transfer of Funds Regulation\u2019s revision with tighter scrutiny of individuals\u2019 transactions.<\/p>\n

Nevertheless, the French government has made efforts to support the crypto industry domestically. \u201cFrance has put itself at the forefront of crypto innovation, at least in terms of the adoption of the regulatory framework and some partnerships with major actors of the industry and the support via the financing of new projects,\u201d Verbiest observed.<\/p>\n

In November 2021, standing alongside C\u00e9dric O, the French secretary of state for the digital economy, Binance CEO Changpeng \u201cCZ\u201d Zhao announced a partnership with the local financial technology association France FinTech, pledging to spend $115 million on the development of the European crypto industry.<\/p>\n

Cautious balancing vs. disinterested suspicion<\/h2>\n

According to a recent study, 4% of French adults consider cryptocurrencies a topic that will determine their vote in the presidential election. This modest number is reflected in the amount of attention both candidates have been giving to crypto. <\/p>\n

A former banker himself, Macron has taken a cautious stance by largely repeating calls for more regulation. At the Davos International Forum in 2018, he called Bitcoin (BTC) and digital currencies \u201cthe most aggressive players on the financial markets […] who can create financial crises and deregulate systems,\u201d alongside shadow banking.<\/p>\n

As Verbiest reminded, Macron was trained to be a high-ranking official of France\u2019s treasury department. Thus, it\u2019s only natural for him to prioritize the European banking sector\u2019s anxieties over the interests of the digital economy:<\/p>\n

\u201cCrypto disrupts banking, and France has a very powerful banking sector. In addition, the European Union and the euro require that France find a consensus with the other European member states on monetary and financial questions.\u201d <\/p><\/blockquote>\n

Nevertheless, Macron\u2019s first term brought into the halls of power at least two notable individuals who openly support the crypto industry. Back in 2019, O promised<\/a> \u201call crypto-asset and blockchain actors\u201d support by setting up \u201ccomprehensive and credible conditions\u201d for growth. Several years later, though, O justified the tightening of AML\/CFT and dismissed crypto entrepreneurs\u2019 reservations about the policy, saying that he didn\u2019t believe that France was \u201cmissing the train of blockchain technology.\u201d <\/p>\n

Emmanuel Macron, the current President of France. Source:\u00a0www.elysee.fr<\/em><\/figcaption><\/figure>\n

Pierre Person, a 33-year-old member of the French Parliament, was one of the co-founders of the youth organization, Les Jeunes avec Macron, as well as the \u201cleft-wing liberal\u201d think tank in support of Macron\u2019s policies, La Gauche Libre. In 2019, he presented a business-friendly report on blockchain to the French legislators and has been advocating for the creation of the European stablecoin ever since.<\/p>\n

More recently, however, Person stepped down from the leadership position in Macron\u2019s La R\u00e9publique En Marche movement and shared his disenchantment with the government\u2019s actions on crypto. <\/p>\n

Macron\u2019s contender, the leader of the familial nationalist party National Rally, Le Pen, always preferred to talk about immigration threats rather than the digital economy. However, she has her own record of a U-turn toward crypto in public speeches.<\/p>\n

Marine Le Pen,\u00a0Member of the French National Assembly and presidential candidate. Source: mlafrance.fr<\/em><\/figcaption><\/figure>\n

In 2016, ahead of the previous election, she called for Bitcoin\u2019s ban, presenting it (and the digital currencies in general) as an idea originating from the \u201cpowerful Wall Street business lobby.\u201d Since then, Le Pen has toned down the Wall Street narrative, limiting herself to support of strict regulation of crypto assets. In contrast to Macron\u2019s entourage, she or her confederates are yet to say a good word about either cryptocurrency or blockchain technology more generally. <\/p>\n

No to self-regulated sector, yes to pan-European approach<\/h2>\n

Irrespective of the outcome of Sunday\u2019s vote, France will likely stay in line with the pan-European regulatory process that the country itself has been contributing to for years. Speaking to Cointelegraph, Stephen Stonberg, CEO of crypto exchange Bittrex Global, commented: <\/p>\n

\u201cIt is unlikely that France would have any major issues with the EU\u2019s upcoming Markets in Crypto-Assets [MiCA] regulation, as French regulators will be aware that a pan-European approach will be necessary to adequately oversee the industry. In fact, it\u2019s more likely that French regulators are waiting for MiCA before making any major moves or commitments.\u201d<\/p><\/blockquote>\n

Should Macron prevail, his administration will likely stay on its current course \u2014 a combination of cautiously crypto-friendly (with an emphasis on blockchains, not currencies) rhetoric and strict but not prohibitive policy toward digital assets, in full accordance with the FATF and EU frameworks.<\/p>\n

A great summary of Macron\u2019s ambiguous relationship with crypto is his interview, given several days before the second round of the election. Responding to questions on digital assets and Web3, the incumbent managed to elude pronouncing the word \u201ccrypto\u201d once while uttering familiar phrases about his country\u2019s mission to become the leader in the digital economy and support innovations. Perhaps, the most important words are:<\/p>\n

\u201cI don\u2019t believe in a self-regulated financial sector. This would be neither sustainable nor democratic. It is up to the public authorities to define the right conditions to allow the sector to develop in confidence while encouraging innovation.\u201d<\/p><\/blockquote>\n

With Le Pen, there is always a chance of a distinct anti-EU stance, but it\u2019s hardly good news for the crypto industry. The candidate, who mixes bits of left and right sentiments in her populist cocktail, hasn\u2019t given any signs that she could be particularly interested in the digital economy. <\/p>\n