New law ensures French insurance companies can invest in cryptocurrencies

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New law ensures French insurance companies can invest in cryptocurrencies
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Recently in France, something called the Pacte law has just passed into effect that will allow life insurance companies to invest in cryptocurrencies, reports FXStreet.

Future proofing themselves

The Pacte law means “action plan for the growth and transformation of enterprises”. Essentially, the French government wants to increase business development and this bill will do so. With the Pacte law, these companies will be able to invest in digital assets with no limitations. Reuters reports that 147 members voted for the bill with 50 against it.

FXStreet also notes that a “dual provision” of the bill means these businesses can move into crypto via “specialized professional funds”. Moreover, they’ll be able to offer life insurance policies through Bitcoin (BTC) and other assets. This is the first offering of its kind to exist in France, and the government believes it will be popular.

Joel Giraud, the deputy and budget manager of Emmanuel Macron’s party La République En Marche, claims that “This was not the primary objective of the Pact, but insurers will be able to offer products based on crypto assets. They will be able to do so through specialised funds,” reports Trustnodes.

A long time coming

Once these publications are made public, the policies will come into effect. Overall, the group had been discussing these implementations for 18 months. Another addition, article 26b, ensures that any “property subject to registration in a shared electronic recording device” will be a part of the assets for a specialized professional fund (FPS). The electronic recording device is the blockchain.

Emilien Bernard-Alzias, a lawyer at Simmons & Simmons LLP, states that “it is written in black and white that FPSs can invest in cryptos like Bitcoin”. This means that businesses other than life insurance can participate as well. Basically, companies can now invest more than 10% of their revenue into non-securities. Most countries including the United States do not allow this.

About Max Moeller

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Cryptocurrency and games writer. Looking to the future by studying how these two industries can blend. LinkedIn: https://www.linkedin.com/in/maxwell-moeller-912044b4/