Watch a video of Joël-Alexis Bialkiewicz, managing partner at Banque Delubac & Cie, speaking at an event organized by ADAN (Association for the Development of Digital Assets) and KPMG at Bercy. The association presents its study “Web 3 and Crypto in France and Europe: Public Adoption and Applications in Industries”.
Addressing the Banking Needs of Web 3 and Crypto Businesses
Our managing partner, Joël-Alexis Bialkiewicz, who has been miningProcess allowing to solve a mathematical or computing challenge imposed by a blockchain’s Proof of Workconsensus. Mining activity requires a variable calculation power depending on the blockchain’s algorithm alongwith difficulty Lire la suite Bitcoin since 2011 and is also the founding president of the mobile payment fintech DeluPay, discusses the state of the French crypto ecosystem and its perception. Regulation, taxation, diplomacy…: he reviews the actions needed for France to become the global financial hub for decentralized finance. These issues, thus addressed, will contribute to changing the current perception towards a relationship of trust necessary for the full adoption of crypto assets in France.
The need for reassurance through crypto regulation
45 %1 of French people believe that France imposes too many regulatory constraints on the cryptocurrency industry (crypto-assets or digital assets) or that France is still not incentivizing enough to develop the cryptocurrency industry.
“However, the risk of overly stringent regulation is that it could deprive French companies of a new mode of financing, stifle innovation, and drive quality projects away from French territory,” says Joël-Alexis Bialkiewicz.
Enhanced DASP registration
The status of Digital Asset Service Provider (DASP) is a regulatory status introduced by the French PACTE law (Action Plan for Business Growth and Transformation) for providers of services related to digital assets. It aims to regulate the market by authorizing and supervising the activities of service providers in the field of crypto-assets:
- buying
- selling
- safekeeping of digital assets on behalf of their clients.
As of July 1, 2023, the DDADUE law (Provisions for Adaptation to the Law of the European Union) strengthens the obligations of future PSANs who have not filed a complete registration request with the AMF. New companies must comply with new rules and requirements regarding the safekeeping and cybersecurity.
European MiCA regulation and CASP approval
The European regulation on Markets in Crypto-Assets (MiCA) establishes a harmonized regulatory framework at the European level for crypto-assets, including digital asset service providers since its adoption in April 2023. It can be seen as an extension or evolution of PSAN, as it aims to strengthen regulation and supervision of actors operating in the crypto-assetDigital asset based on cryptography principles. Peer to peer traded, on a decentralized network, thanks to Distributed Ledger Technologies such as blockchain. The user is integrated into storage and transaction Lire la suite domain. Registered PSANs will indeed have to become CASP (Crypto Assets Service Providers) by 2026 to address the European market.
Regulation has primarily focused on combating money laundering and terrorist financing. Yet, illicit activities represent only 0.15 to 0.24% of cryptocurrency transactions, a proportion significantly lower than that of FIAT currencies.
Protecting users is another aspect of necessary regulation if we want to facilitate access to these digital assets. Indeed, an appropriate regulatory framework must accompany these technological evolutions for mass adoption.
Did you know? Banque Delubac & Cie is the first French bank to obtain its PSAN registration (Digital Asset Service Provider).
The Need for a Convergence Between Crypto and Traditional Finance
Various scandals and crypto scams have undoubtedly tarnished the image of the BlockchainA blockchain is a type of distributed ledger technology. It is a huge database formed by blocks,cryptographically linked to each other, containing information such as transactions. These blocks are addedfollowing Lire la suite revolution and provoked distrust:
- bankruptcy of marketplaces (MtGox, FTX),
- hacks on decentralized bridges (Harmony, Nomad, Wormhole, Ronin),
- ICOs that are difficult to audit and for which the AMF’s approval remains optional,
- market manipulation facilitated by the low liquidity of most tokens.
Nonetheless, the evolution of the markets has not affected the adoption of cryptocurrencies (crypto-assets or digital assets) by the French, which showed a growth of 20% in 2023.1 In parallel, the convergence between traditional finance and the digital asset industry is progressing with trading volumes in digital assets predominantly institutional.
70% of crypto companies report having had difficulties in accessing banking services, such as simply opening a bank account.2
Did you know? Delubac Corporate Banking supports players in the crypto-assets and web 3 ecosystem in the corporate part of their activities.
Read: Banking and Crypto: A Compatibility Rich in Opportunities
Taxation of crypto assets
Work is needed with public authorities to facilitate the declaration of crypto assets in tax returns. Currently, it is up to each individual to perform this complex calculation and declare it, unlike traditional financial assets which are declared by intermediaries.
The diplomatic aspect of crypto
Welcoming foreign players makes France a global platform in the field of crypto. To fully seize the opportunities of this constantly evolving sector, French players also need support to spread beyond our borders.
“France is ahead and capable of becoming the global financial hub for decentralized finance and making its mark worldwide. There are still some steps to overcome. It’s up to all of us to make this possible!” Joël-Alexis Bialkiewicz
Source : 1 & 2. ADAN & KPMG Study, 2023, Web3New web version using blockchain technology. Decentralized, by the users, for the users. Lire la suite and crypto in France and Europe: adoption by the general public and applications in industries.