France imposes tougher KYC requirements for crypto, including peer-to-peer transactions
December 9, 2020, 6:03PM EST
1 min read
The French Ministry of Finance has formally unveiled stringent know-your-customer requirements for crypto transactions.
According to a new document released by Minister Bruno Le Maire, virtual asset providers (VASPs) in France will now have to prohibit anonymous crypto accounts.
The Block first reported the impending move on Tuesday. Sources indicated that exchanges would face higher KYC standards as part of a crackdown on anonymity in the space. Now, even crypto-to-crypto transactions will fall under KYC requirements.
The order was presented to the Council of Ministers on Wednesday, according to a tweet from Le Maire. The attached announcement referenced recommendations from the Financial Action Task Force, the G7 and the G29 as influencing its decision to firm up requirements.
Sources previously told The Block the decision was related to recent terrorist attacks on France, which Le Maire's announcement also references. French police previously arrested nearly 30 people who allegedly used cryptocurrency to fund Islamist extremism in Syria.
In addition to KYC measures, sources told The Block that regulation requiring registration for crypto-to-crypto exchanges is on the way.