French fiscal authorities are strengthening the country's cryptocurrency regulations in a move to foreclose illicit activities like money laundering and terrorism financing.

On Dec. 9, several ministries in France jointly introduced an order aiming to prevent anonymous digital asset transactions by banning anonymous crypto accounts.

The new regulatory attempt is backed by French finance government minister Bruno Le Maire, overseas minister Sébastien Lecornu and inferior economy minister Olivier Dussopt. The order is pursuant to Article 203 of France'due south PACTE police force, which stands for the Activity Plan for Business Growth and Transformation.

In the document, the ministries take admitted that digital avails or cryptocurrencies provide "pregnant opportunities for the economy," noting that the French government is fully enlightened of its importance.

Despite promising opportunities, crypto besides comes with significant risks related to illicit fiscal action, the authorities noted.

The ministers specifically referred to September 2020 arrests involving a terrorist financing network using digital assets to comprehend their tracks. Major global government and organizations like the Financial Activeness Task Force, the G7 and the G20 accept called for measures to prevent illicit activity using crypto, the ministers said, noting:

"The government wishes to promote the development of crypto avails nether the best conditions of security and attractiveness."

Equally such, the French government is preparing to innovate new regulatory provisions in order to utilize new digital identification tools for crypto transactions and virtual asset service providers.

"This request, which emanates from actors in the ecosystem, will brand it possible to fight against anonymous transactions in digital assets while facilitating user identification," the document reads.

French authorities have been vocally concerned over the financing of illicit activities with cryptocurrency. In October 2020, French finance government minister Le Maire criticized crypto for providing boosted tools for illicit activities like purchasing drugs and weapons also equally money laundering.