Friday, 24 May 2019
BREAKING NEWS

France allows $2 trillion life insurance market to invest in crypto – Chepicap

French lawmakers adopted a new law that allows the $2 trillion life insurance market to invest in cryptocurrencies, through the use of specialized professional funds.

According to Trustnodes, the ‘Plan d’action pour la croissance et la transformation des entreprises’ law, which translates to ‘Action plan for the growth and transformation of enterprises’ was adopted this Thursday by French lawmakers and will allow the insurance companies to offer life insurance policies exposed to cryptocurrencies, which is a first for a product so popular in France.

Joel Giraud, deputy and budget manager of Emmanuel Macron’s party La République En Marche, said that this was not the primary objective of the Pact.

‘However, insurers will be able to offer products based on crypto assets. They will be able to do so through specialised funds.’

Read more: French stock market regulator warns public about crypto-related firm

The ‘Pacte’ law has been under discussion for 18 months, and the amended Insurance Code now allows specialized professional funds (FPSs) to be placed in life insurance account units.

From now on, any property subject to registration in a ‘shared electronic recording device’ (a blockchain) will be able to constitute the assets of an FPS.

‘With these two provisions, it is written in black and white that FPSs can invest in cryptos like Bitcoin’, said Emilien Bernard-Alzias.

France is now the first country to pass a crypto specific law can be seen as very favorable to the crypto space, including a guaranteed bank account if a crypto project is granted an optional license by their financial regulator, AMF.

Read more: 10 years of BTC mining consumed as much energy as US cars do every 3 days

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Source: https://www.chepicap.com/en/news/8863/france-allows-2-trillion-life-insurance-market-to-invest-in-crypto.html

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