Minute Crypto Regulation n. 6: France, the United Kingdom and the United States

On the occasion of this monthly article, we will provide an overview of legislative projects or new regulatory trends related to Bitcoin and cryptocurrencies. In this sixth installment of the Crypto Regulation Minute, we will travel to France, the UK and then the US.

France: the first public auction of NFT

As expected, the bill to amend article L. 320-1 paragraph 1 of the Commercial Code to include public auction sales of “certain intangible movable assets”, in particular NFT, has been definitively adopted. Indeed, the law was published to Official JournalI du March 1, 2022. The implementing decrees should be published by the end of the year …

However, the FauveParis auction house, renowned for breaking the codes of the profession, has decided to ignore these decrees. On 10 March 2022 FauveParis organized the first public auction refering to NFT in France. This is not surprising when we know that FauveParis had attempted to organize an NFT auction that would take place on February 24, 2022, which is before the publication of the law. Rejected by the Sales Council (regulator of the sector), the sale was definitively canceled.

Tweet from FauveParis on the first NFT public auction in France – Source: Twitter

During this sale, 47 NFTs from different artists were sold at auction. Among these artists was the American Beep who holds the record amount for an NFT sale with his work “ Every day: the first 5,000 “ for which it was sold over $ 69 million. This sale was as successful as hoped, some people made bids from the street where the giant screens made it possible to follow the sale live.

In addition, the president of FauveParis has launched this auction in a reassuring tone for the most skeptical:

“This is a cry from the heart: you don’t need to understand NFTs, you just have to hear! “

In short, this is what every art form should inspire: a pleasant and familiar feeling.

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UK: Lawsuits against cryptocurrency companies follow one another

In the UK, the UK financial sector regulator, the Financial Conduct Authority (FCA)said it has opened more than 300 files on companies involved in digital assets between April 1, 2021 and September 30, 2021. Recall that the FCA is a regulatory authority independent of the British government. He has to make sure of the good application of stock exchange law current.

Furthermore, between April and September 2021, the watchdog received thousands of complaints about hypothetical cryptocurrencies:

“Between April and September last year, FCA received 16,400 requests for possible scams, an increase of almost a third compared to the same period in 2020”.

According to FCA data, during this period it would have prevented one in four companies to enter the stock exchange.

Separately, the FCA claimed it did 50 ongoing investigations, including criminal investigations, of cryptographic activities not registered with its services. Only starting March 2, 2022 33 cryptocurrency companies have been registered with the FCA, and 22 have obtained approval fromtemporary registration.

United States: Towards the coordination of cryptocurrency regulations

US President Joe Biden has shown that he is not fundamentally opposed to cryptocurrencies. On the night of March 9 to 10, the President of the United States signed the decree Executive order entitled “Executive order to ensure responsible development of digital assets”.

This decree aims to solve a whole series of problems encountered in the cryptographic space: the consumer protection, the illicit finance, the “Responsible development” as well as thefinancial inclusion.

In addition, this text does not in itself introduce new rules, but rather enjoins federal agencies to opt for a coordination of their actions. Therefore, the Federal Trade Commission, the Securities and Exchange Commission (SEC) and the CFTC are encouraged to coordinate their efforts regarding oversight of the cryptocurrency industry. In addition, the Treasury Department “will produce a report on the future of currency and payment systems. “

Therefore, President Biden’s executive order is divided into 10 sections :

  • Policy
  • Targets
  • Coordination
  • Central bank digital currencies (MNBC)
  • Consumer protection
  • Financial stability
  • Actions to combat illicit financing of digital assets
  • International cooperation
  • Definitions
  • General provisions

Finally, theimpact on climate of the cryptocurrency industry is not left out by the president of the United States although the executive order does not dedicate a specific section to it. In fact, Joe Biden before the publication of this decree asked several environmental authorities such as theEnvironmental Protection Agency to present him with a report. This report should examine “the potential of these technologies [telle que la blockchain], to hinder or advance efforts to combat climate change. “

Have a good week on the Journal Du Coin!

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