Banks Can't Snub Crypto Startups Thanks to France's New Blockchain Law

France's new crypto law grants blockchain-related projects the right to a bank account, provided they opt in to being regulated.

The new law paves the way for French life insurance and private equity funds to get more exposure to crypto assets.

According to Domitille Dessertine, head of the fintech, innovation and competitiveness division at AMF, "Strong feedback" from crypto players on the need for adequate banking was matched by firm consensus from the French authorities.

"Before PACTE law this was a struggle for crypto-related businesses to open a bank account with a French bank. But now French banks which refuse to open an account will have to explain their refusal before the French regulators and we can bet they would avoid having this discussion with the French regulators."

Enthusiasm at the highest levels for France's new crypto rules has been very clear.

Last week at Paris Blockchain Summit, French Finance Minister Bruno Le Maire proposed that the European Union use the bill as a model "To set up a single regulatory framework on crypto-assets inspired by the French experience."

"There has been significant interest in the new license proposed for digital asset service providers, which includes crypto exchanges, be they fiat to crypto or crypto to crypto. So if Huobi wants this license it will be possible for them to ask for it."

Hubert de Vauplane, a partner at law firm Kramer Levin Naftalis & Frankel, said life insurance offices may have the possibility to invest in crypto thanks to the new PACTE law, "But honestly, at this time it is theoretical."

"If a life insurance company wants to sell life product exposed in crypto, it is only possible via an AIF/ FPS fund. No custodian fund in France is yet prepared to accept to 'keep' crypto assets. But for sure, the offer will come soon," he said.

The new rules also encourage French private equity or VC funds to get more involved in ICO tokens, allowing them to invest in crypto assets up to 20% of their assets under management.