France is reportedly preparing to regulate all crypto-to-crypto transactions and roll out stricter know-your-customer (KYC) rules.
Citing sources familiar with the matter, The Block reports that the French Finance Ministry will publish a decree this week that will mandate full KYC for all customers of crypto exchanges and firms regardless of transaction size.
KYC checks are currently limited to crypto-to-fiat transactions worth at least 1,000 euros ($1,211.15). With the upcoming change, all crypto transactions will undergo full KYC processes and will require users to submit two types of government identification.
Crypto firms based in the country and those that actively target residents in France will have to comply with the new KYC rule.
In addition, the new measures will include mandatory registration for crypto-to-crypto exchanges. Under the current regulatory framework in France, the mandatory registration is only applicable to crypto-fiat exchanges and crypto custodians. The Block sources say crypto-to-crypto exchanges have six months to comply.
Simon Polrot, president of the crypto association ADAN, says the recent terrorist attacks on France prompted the government to propose stricter crypto regulations. In September, French police arrested 29 people who were suspected of using cryptocurrency to finance Islamic extremists.
“The government had to react and take a stance and to do something to explain that they are doing something to fight terrorism.”
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