Minute Crypto Regulation # 6: France, United Kingdom and United States

On the occasion of this monthly articlewe will provide an overview of legislative projects or new regulatory trends relating to Bitcoin and cryptocurrencies. In this sixth installment of the Crypto Regulation Minute, we will travel to France, the United Kingdom, and then the United States.

France: The first public auction of NFT

As expected, the law Project to amend Article L. 320-1 paragraph 1 of the Commercial Code to include public auction sales of “certain intangible movable assets”, in particular NFTs, has been definitively adopted. Indeed, the law has been published to Official JournalI of 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 March 10, 2022, FauveParis organized the first public auction relating to NFTs in France. This is not surprising when we know that FauveParis had tried to organize an NFT auction which was to be held on February 24, 2022, i.e. before the publication of the law. Rejected by the Sales Council (regulator of the sector), the sale was finally canceled.

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

During this sale, 47 NFTs from different artists were auctioned off. Among these artists was the American Beeple who holds the record amount for an NFT sale with his work “ Every day: The first 5,000 » which sold for over $69 million. This sale had the expected success, some people bid from the street where giant screens made it possible to follow the sale live.

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

“This is a cry from the heart: there is no need to understand NFTs, you just have to feel! »

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

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United Kingdom: Legal actions against crypto companies follow one another

In the United Kingdom, the regulator of the British financial sector, the Financial Conduct Authority (FCA)said to have opened more than 300 files about companies involved in digital assets between April 1, 2021 and September 30, 2021. As a reminder, the FCA is a regulatory authority independent of the British government. She must make sure of the good application of stock market law in force.

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

“Between April and September last year, the FCA received 16,400 inquiries about 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 market.

Separately, the FCA said it had 50 investigations in progressincluding criminal investigations, of crypto businesses that are not registered with its services. As of March 2, 2022, only 33 crypto companies were registered with the FCA, and 22 have obtained approval fromtemporary recording.

United States: Towards coordination of crypto regulations

US President Joe Biden has proven not to be fundamentally against 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 bunch of problems encountered in the crypto space: the consumer protection, the illicit finance, the “responsible development” as well as thefinancial inclusion.

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

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

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

Finally, theclimate impact of the crypto industry is not left out by the US president despite the fact that the executive order does not devote a specific section to it. Indeed, Joe Biden before the publication of this decree asked several environmental authorities such as theEnvironmental Protection Agency to submit a report to him. This report should examine “the potential of these technologies [telle que la blockchain]to hinder or advance efforts to combat climate change. »

Have a nice week on the Journal Du Coin!

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