As Bruno Le Maire wants to make France the European “hub” of cryptocurrencies, he will have to deal with the arrival of the new pro-crypto British Prime Minister Rishi Sunak.
Since Brexit, Paris and London have been in fierce competition to be the European capital of finance. The crypto ecosystem, most developed in the United States and London, is establishing a solid base in France with the growth of crypto companies and growing interest from investors.
Last Monday, the Minister of Economy and Finance Bruno Le Maire stated that he wanted to make France the first “European” center of cryptocurrencies. He also wants to make France the “base camp” in Europe for cryptocurrencies and decentralized finance (DeFi). But he will have to face a strong competitor: Rishi Sunak, the new British Prime Minister, who has already shown his support for the crypto ecosystem.
“It’s a positive for cryptos”
On Monday, Rishi Sunak became British Prime Minister, succeeding Liz Truss. His appointment was well received by the UK crypto ecosystem. “It’s a positive for crypto and the overall economy,” CryptoUK lobby manager Ian Taylor told Reuters. CoinDesk.
Chancellor of the Exchequer under Boris Johnson, he declared in April that he wanted to make the UK a world “hub” for cryptocurrencies, announcing a whole series of measurements in this sense.
“My ambition is to make the UK a global hub for crypto-asset technology and the measures we have outlined today will help businesses invest, innovate and grow in our country,” said Rishi. Sunak.
Stablecoins: a means of payment?
In favor of effective regulation, the latter aims to “give you confidence” in companies in the crypto ecosystem, in order to “invest for the long term”. Among the measures proposed by the British government, a door to stable currencies, cryptocurrencies backed by a fiat currency (euro, dollar etc.).
“With the right regulation, stablecoins can be a more efficient means of payment and increase consumer choice,” said the British government, which aims to bring stablecoins into the payments regulatory arena.
The UK government also wants to improve “the competitiveness of the UK tax system to encourage the further development of the UK crypto-asset market”. It is in this sense that he wants to focus on loans in decentralized finance (DeFi) “to be treated for tax purposes”
“Extensive power over the crypto industry”
If the government’s cryptocurrency bill is passed, it “could give domestic regulators sweeping powers over the crypto industry — starting with the behavior of asset-linked cryptos like stablecoins.” the application of payment regulations”, he emphasizes. CoinDesk.
Cryptocurrencies as regulated financial products
On Tuesday, British lawmakers voted to recognize cryptocurrencies as domestically regulated financial products, which was one of MP Andrew Griffith’s proposed amendments to the bill.
“Treasury will consult with industry and stakeholders on its approach before using the powers to ensure that the framework reflects the unique benefits and risks presented by the crypto business,” the latter said.
Before it comes into force, the bill will still have to pass through the House of Lords and the Upper House of Parliament, then through a final examination followed by assent from King Charles III.
To date, while the MiCa (Crypto Asset Market) regulation should provide a framework for Europe from 2024, the United Kingdom is far from adopting such regulations. In 2019, the British regulator, the Financial Conduct Authority (FCA), published a report on cryptocurrencies, considering that while crypto companies may fall under the purview of payment services regulation, tokens should not be regulated in any way by Theirs.
Since Rishi Sunak’s statements, the crypto ecosystem has gone through crypto crashes who have reshuffled the cards, not only in the stablecoin sector, but also weakening some companies that are already bankrupt, such as Celsius and Nuri. The first speech about the crypto ecosystem as Prime Minister will be closely followed by the British crypto ecosystem, but also the French one.