With the emergence of becoming a FinTech hub, the government of France, under new rules, has given approval to trade unlisted securities using blockchain technology,
Based on the reports, new rules have been issued by the French government, via its Finance and Economic department, which enables FinTech firms and banks to trade unlisted securities using blockchain platforms.
The legislation from the French government is notable as they have acknowledged blockchain as a new technology for powering the securities trading. This will help in performing instant trades without needing an overseeing clearinghouse. In addition to the fees for clearing houses and custodians, the securities listed via centralized financial exchanges remains a time- consuming procedure.
The finance minister of France, Bruno Le Maire told in a statement- “The use of this new technology will allow FinTech firms and other financial actors to develop new ways of trading securities that are faster, cheaper, more transparent and safer.”
These new rules are announced at a time when Paris is trying to prove itself as a destination of FinTech after the UK’s Brexit. It has also been presenting itself as a financial centre for businesses, which are moving away from London. The government of France has already announced major cuts in taxes, which is an estimated $13 billion, in payroll taxes for attracting financial institutions from London. Moreover, Le Marie has announced that the new rules will be an asset for Paris claiming to be an attractive option as a financial centre, especially in newer technologies like blockchain.
In news related to it, the country’s central bank- the Banque de France, has divulged its first experiment with the use blockchain technology. It focuses on cross- border payments within the Single Euro Payments Area (SEPA). The country’s first banking blockchain consortium was established in 2016 with numerous financial institutions that included BNP Paribas and Société Générale. It was made with the aim of blockchain infrastructure development for small- sized as well as medium- sized businesses.