On the 11th of April, 147 French parliamentarians passed the pacte law which now gives insurance firms operating within its borders power to launch specialized professional funds which will be the investment vehicle that would enable them to invest in crypto. The laws dubbed Plan d’action pour la croissance et la transformation des entreprises had only 50 parliamentarians going against the majority. Apart from investing in Bitcoin and the likes, the law also gives them the power to also invest in tokens.
Per notes on Chainbits, enactment of the new bill gives insurance firms a chance to channel billions of dollars in holding into the crypto sector and make investments without a hassle. Besides giving the insurance firms the power, the law doesn’t come with a threshold limiting insurance firms from injecting money in the form of investments into the crypto sector. They can now invest as much money as they wish. Moreover, the law also enables insurance firms to issue life insurance policies pegged to digital coins. Furthermore, through the specialized funds, insurance firms now have the rights to create more products pegged to virtual currencies. Although the initiative behind the passing of the law was to get rid of hurdles preventing entities from making investments, it has opened up the business sector by simplifying the process of creating a business.
While issuing a comment about the passing of the pacte bill Joel Giraud budget manager of Emmanuel Marcon party, La Republique En Marche said;
“Although the pacte law has given power to insurance firms on French soil to invest in crypto, this wasn’t its agenda. The pacte law goal was the privatization process which will also take care of the sale of the state’s stake in airports group known as ADP.”
According to Giraud, the latter would help in raising funds for an innovation fund. Apart from being the budget manager of La Republique En Marche party, Joel Giraud is also the deputy of the party. Besides Joel Giraud airing his views about the law, French Finance Minister Bruno Le Maire said passing of the new bill will help point France in the right direction for future Developments. While the French national assembly has been passing laws favoring the crypto sector as a whole, there have also been proposals whose role would affect the industry. In this case, it’s Eric Woerth proposal whose aim was to ban anonymous crypto.