A newly passed act in France allows life insurance providers to invest in crypto-currencies and tokens without any limitation on the amount that can be allocated.
The Pacte law (Plan d’action pour la croissance et la transformation des entreprises, Action plan for the growth and transformation of enterprises) was adopted this Thursday by French lawmakers according to a local paper.
Based on a rough translation, they say a dual provision of the act allows insurers to invest, via specialized professional funds, in crypto-assets. FPCIs (Fonds Professionnel de Capital Investissement, Professional Capital Investment Funds) are also affected by the measure.
According to information gained by Les Échos, one of France’s biggest financial paper, the Pacte law passed this Thursday in the National Assembly allows insurers to offer life insurance policies exposed to crypto-monies. A first for a product so popular in France, they say.
“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,” says Joel Giraud, deputy and budget manager of Emmanuel Macron’s party La République En Marche.
It appears France has basically removed a restriction – also found in US law and elsewhere – that only circa 10% of funds under management can be invested in non-securities.
Meaning there’s now far greater regulatory clarity in one of the world’s biggest economy and in one of the leading architects of the European Union.
France has now become the first country of relevance to pass a crypto specific law that is generally seen as very favorable to this space, including a guaranteed bank account if a crypto project is granted an optional license by their financial regulator, AMF.
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