The new law “On an action plan to stimulate growth and transformation of enterprises” was adopted by French parliamentarians. It will allow local insurance companies to invest in cryptocurrencies and tokens without restrictions on the amount of the contribution.
Insurers will be able to invest in cryptocurrencies through specialized professional funds. Also for the first time in the history of France, insurance companies will be able to offer consumers products based on cryptocurrency.
“This was not the primary goal of the law, but insurers can actually offer cryptocurrency-based products. They will be able to do this through specialized funds, ”said Joel Giraud, a member of the National Assembly.
New rules will come into force after the publication of the decree on the application of the law. Access to the cryptocurrencies of insurance companies was made possible by making the appropriate provision in Article 21 of the law. It provides for amendments to the Insurance Code for the inclusion of specialized professional funds related to life insurance accounts.
In addition, the necessary amendments to the Monetary and Financial Code are set out in Article 26 of the law, according to which assets “registered in the distributed electronic record device”, that is, the blockchain, are available for investment.
“In these two articles it is written in black and white that specialized professional funds can invest in cryptocurrencies, such as Bitcoin,” said Emilien Bernard-Alcias, a lawyer at Simmons & Simmons LLP.
According to the article, investment funds of private equity capital fall under the new law, that is, in reality, its effect may be much broader and extend to institutional investors in general, including pension funds.
As noted by Trustnodes, French lawmakers, in fact, removed the restriction existing in the United States and other countries and did not allow funds to place more than 10% of funds in assets other than securities, due to which the level of regulatory certainty in one of the largest EU economies immediately increased.