Categories: CryptocurrencyNews

New Act allows $2 Trillion French Insurance Market to invest in Cryptocurrencies

The French government has recently passed a new act that would allow insurers to invest in Cryptocurrencies like Bitcoin.

The National Assembly of France passed what is known as the Pacte Law “Plan d’action pour la croissance et la transformation des entreprises, Action plan for the growth and transformation of enterprises” on April 11th with 147 in favor and 50 against, according to the local news outlet Les Echos.

According to Les Echos, a dual provision of the new bill allows insurers to invest in Crypto assets (without any limitations) via specialized funds. Joel Giraud, member of the National Assembly of France said that allowing Crypto assets was not the primary goal of the act but allows insurers to place Crypto asset products via specialized funds, he confirmed:

“This was not the primary goal of Pact, but insurers will actually be able to offer products based on crypto-assets. They will be able to do so through specialized funds,

This provision was made possible by two texts of the Pacte Act, Article 21 was amended to allow the placement of specialized professional funds (SPF) “in life insurance units of account.” The SPFs will be able to invest in any number of assets without any limitation.

Article 26 bis of the Covenant amended the provisions of the Monetary and Financial Code relating to assets eligible for investment by SPFs. Henceforth, any “good” subject to a “registration in a shared electronic recording device”, ie a blockchain, can compose the assets of an FPS, reports Les Echos.

Emilien Bernard-Alzias, a lawyer at Simmons & Simmons LLP said:

“With these two provisions, it is written in black and white that FPS can invest in crypto-active like bitcoin,”

Blockmanity’s Take

Cryptocurrencies are slowly making their way into the traditional financial world, with infrastructure built by Fidelity and Bakkt and tech companies like Facebook actively working on Crypto products, it is setting up for mainstream adoption.

Regulatory clarity is very important to permeate into the traditional financial world like the $2 Trillion insurance market, the new act seems favorable for Crypto adoption.


Discuss this news on our Telegram Community. Subscribe to us on Google news and do follow us on Twitter @Blockmanity

Did you like the news you just read? Please leave a feedback to help us serve you better

Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.

Shrikar Parashar

Shrikar is a Blockchain evangelist. He is a die-hard fan of security tokens. He follows the market closely but does not trade. He believes in Hodling.

Share
Published by
Shrikar Parashar

Recent Posts

Bullish Signals for Sui Blockchain: Top SUI meme projects of 2024

Macro guru and Real Vision CEO Raoul Pal shone the spotlight on a rising layer-1…

4 weeks ago

AI Companions: A New Era of Digital Relationships and Virtual Experiences

As the technology landscape transforms at lightning speed, AI Companions has positioned itself as a…

2 months ago

zkCross Network: Simplifying DeFi Complexity and Achieving Fundraising Success

Did you know that 85% of DeFi value is concentrated in six blockchains?  DeFi is…

2 months ago

Don’t Miss Out: Get $CLP Tokens in the Exclusive RWA IDO Now!

CLAPART - a groundbreaking RWA platform has launched its much-anticipated $CLP token IDO on Gempad…

2 months ago

Step into the Future of Web3 at Blockchain Futuristic Conference 2024, August 13-14

Join us at BFC 2024 to explore the future of Web3. Use a special discount…

3 months ago

WebX Asia 2024: Web3 Innovation Ignites in Tokyo

Catch all the updates with Altcoin Observer, official media partner of WebX Asia 2024. Gear…

3 months ago