Regulation
Macron’s early election plunges the Parisian crypto scene into uncertainty – DL News
- Macron has long supported crypto with tax incentives and support for startups.
- A potential shift of power in the French Legislative Assembly could coincide with the advent of MiCA.
- Industry experts are interested in the potential impact of right-wing influence in Brussels.
French President Emmanuel Macron has long believed in cryptocurrencies.
During his seven years in power, his government took numerous steps to reward founders with all kinds of incentives to set up shop in the booming digital assets hub of Paris.
Now the French crypto industry may have to fend for itself.
The center-right prime minister’s decision to hold early parliamentary elections on June 30 has the digital assets sector pondering a sudden change in policy.
“It’s hard to say what’s next because other political parties don’t have a specific stance on crypto,” said Daniel Seifert, Coinbase vice president and general manager for Europe and the Middle East. East.
Incoming Crypto Regulations
The election of June 30 and the second round of July 7 will not end Macron’s five-year term: the presidential election will not take place until 2027. But asking voters to elect a new National Assembly could result in a managed majority by the national right wing. Unity party and new Prime Minister.
This type of hybrid government is not without precedent in French political history. But whichever party takes the lead nationally in July will need to engage with the new European Commission on new crypto regulations.
Top of the list: the Crypto Asset Markets Act which will come into full force at the end of the year and will set the rules of the road for the industry.
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It turns out that MiCA’s rules for stablecoins will go live on June 30.
“This gave a lot of confidence to foreign players by choosing Paris. This is something that could disappear.
— William O’Rorke, ORWL
“What remains of Macron’s legacy for the crypto industry in France remains to be seen, but his ambition has always been to make France a major crypto hub,” said François Volpoet, regional director general from blockchain analysis company Chainalysis.
Starting in 2017, the Macron administration opened the doors to investments in the sector. The government has rolled out start-up-friendly tax breaks and incubation opportunities for investors. As a result, the Parisian crypto scene has come to life.
Paris is home to several crypto unicorns, such as Ledger and Morpho, and sports a diverse Web3 culture. The market regulator has registered more than 100 crypto companies.
Europe’s crypto industry regularly meets at the capital’s most illustrious venues, including the Louvre, the Ritz Paris hotel and the sumptuous Palais Brongniart, the city’s former stock exchange.
Bruno Le Maire, the Minister of Finance, and Jean-Noël Barrot, the Minister of Digitalization, personally welcomed crypto giants like Circle, Binance and Crypto.com when they settled in Paris.
“All of these actors had access to the highest level of the Ministry of Economy,” said William O’Rorke, an attorney at ORWL, a local law firm that represents crypto companies.
“This is important because it gave a lot of confidence to foreign players to choose Paris to set up operations. This is something that could disappear.
But O’Rorke doesn’t imagine there will be direct regulatory changes based on the outcome of the June election.
Many in the industry don’t care which party governs.
The Renew party in the European Parliament, which Macron represents, won only 15% of the vote on Sunday. The far-right Identity and Democracy party leads the polls with more than 31%. In France, this group is represented by the National Rally party.
Slight lag
While the center is largely being held in Brussels, the crypto industry is trying to gauge how Sunday’s results could affect the industry across the bloc.
“The slight shift to the right may well result in a greater focus over the next five years on competitiveness and growth,” said Mark Foster, head of European policy at the Crypto Council for Innovation.
“This could lead to a more conducive framework for innovation-friendly policies. »
The left-wing Greens party was hit hard, losing 18 seats in the European Parliament.
“The European Parliament could decrease the focus on Bitcoin and the energy consumption of proof-of-work mechanisms,” said Tommaso Astazi, Blockchain’s head of regulatory affairs for Europe.
The elections also saw the return of some of the lawmakers who helped shape European crypto policy over the last term.
They include center-right German lawmaker Stefan Berger and Czech lawmaker Ondrej Kovarik, both of whom helped author MiCA.
“We will still have some of our closest members of the European Parliament, those with whom we have worked for five years,” Astazi said.
Inbar Preiss is DL News’ Correspondent in Brussels. Contact the author at inbar@dlnews.com.