French government bans privacy platforms and coins

The French government has announced a ban on privacy digital assets and crypto exchanges. According to reports, the country has announced that privacy-focused tokens and platforms are illegal within the country’s jurisdiction.

In a post shared by Crypto Beast on X, the move means that privacy tokens like Monero and services like Tornado Cash are all banned, marking a decisive step in France’s intensifying regulatory stance on digital assets. Mixing platform Tornado Cash has been subject to regulatory scrutiny in several jurisdictions, with the United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) initiating sanctions against the platform in 2022.

In the same vein, privacy tokens like Monero have been targeted by regulators globally due to their use for illicit activities. The tokens have enhanced privacy features, obscuring their transaction details from the public. While some proponents have argued that the tokens are in line with the ethos of cryptocurrency by increasing user confidentiality, critics have argued that the use of the tokens for illegal activities. Several platforms have taken steps to remove the tokens, with Binance removing them in select countries.

French government orders ban on privacy tokens and platforms

According to the report, the recent move by France is aimed at removing all the concerns surrounding the tokens and platforms. In addition, the French government is making moves to align more closely with the Financial Action Task Force (FATF) guidelines, which recommend strict oversight of digital assets that cannot be traced. Lawmakers in France have argued that total anonymity in crypto transactions poses a big risk in fighting illicit finance, tax evasion, and cybercrime.

The ban also places France among some of the restrictive European jurisdictions regarding privacy-enhancing crypto technologies, potentially opening a path for other EU countries to adopt a similar approach before the bloc finalizes its Markets in Crypto-Assets (MiCA) regulatory framework. The move could hinder the adoption and use of privacy tokens, even within regulated financial environments.

With France joining the United States and other countries with a ban on the Tornado Cash mixing platform, there could be a wider international crackdown on the platforms. However, the challenge moving forward for privacy-focused developers would be navigating a crypto industry that is hostile toward complete anonymity. While privacy remains a tenet in the blockchain sector, there is without a doubt that bad actors are now taking advantage of the feature.

Chainalysis report notes a rise in use of crypto for illicit activities

There has been a rise in the use of digital assets for illegal activities across the globe. According to a Chainalysis report , criminals have now started turning to crypto because they feel that it is efficient, faster, and provides them the anonymity they need for their bad acts. In the report, Chainalysis mentioned that one of the reasons why criminal gangs are moving to crypto is that they are used to move funds easily with little detection.

The report mentioned that many gangs are taking advantage of the ease of moving deadly products, noting the low transaction fees and instant reflection of the funds as the appeal of the assets. In addition, state-backed entities like the North Korean Lazarus groups have been using digital assets, albeit privacy platforms and tokens, to launder and move their stolen funds. There has also been a rise in kidnappers requesting payments in digital assets.

According to previous reports, the father of a crypto millionaire was kidnapped , with the criminals demanding digital assets in exchange for his freedom. The group mutilated the kidnapped individual, cutting his finger as a means to pressure his crypto-millionaire son into sending the ransom. While the police were able to bust the location and free the victim, it is the third abduction connected to the crypto industry in France this year.

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