French finance ministry links cryptocurrencies to drug trafficking and money laundering

France’s Minister of the Economy and Finance Bruno Le Maire announced amendments to the separatism bill, tightening regulation of cryptocurrencies. The official argues that tougher oversight will reduce opportunities for financing terrorism.

We must strengthen our surveillance systems against financing of terrorism. For example, cryptocurrencies must be more tightly regulated. With @olivierdussopt, we will make proposals in this regard as part of the separatism bill. pic.twitter.com/JJ00Rz7f86

— Bruno Le Maire (@BrunoLeMaire) October 18, 2020

His comments on Sunday’s appearance on France 3 did not go unnoticed among members of the crypto community.

Starchain Capital partner Cyril Paglino urged officials not to spread the long-standing myth about cryptocurrencies. He noted that cryptocurrency transactions are traceable on the blockchain, while terrorists still find it easier to use cash.

Paglino also cited a recent leak of secret FinCEN documents, which uncovered money-laundering schemes worth $2 trillion through the largest banks.

In response, Le Maire pointed to the possibility of using anonymous cryptocurrencies to facilitate illicit activity. At the same time, he stressed that he did not doubt the ability to track blockchain transactions.

Dear @cyrilpaglino, we do not question the reliability and traceability of all blockchain technologies. But some cryptocurrencies have been used to facilitate fraudulent transactions (drugs, weapons, money laundering) anonymously. Nuance. https://t.co/m2YFNa9ipd

— Bruno Le Maire (@BrunoLeMaire) October 19, 2020

Bruno Le Maire is known for his critique of Libra. In September 2019, he expressed concerns that its launch in Europe threatens the financial sovereignty of states.

France, along with Germany, Italy, Spain and the Netherlands, became the initiator of developing strict rules for stablecoins. Subsequently they took concrete form by the European Commission.

Earlier in September, French law enforcement conducted a large-scale operation to stop a financing scheme of Islamist extremists using cryptocurrencies.

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