France just vaulted to the front of the globe in validating cryptocurrencies and digital assets. French regulators have passed a law allowing insurance companies to invest in cryptocurrencies (tokens) with no stipulation on how much can be allocated. THAT is a $2 trillion life insurance sector. So France has taken the ‘strings’ off insurers that may wish to take advantage of the new digital asset sector (Bitcoin, etc). The only “catch” is that the insurers have to invest via professionally managed funds. In addition, there will be no limit on the amount that can be invested in the sector. Previously firms were restricted to only 10% of funds being invested in non-securities (that’s the case with many firms in the US as well). And, this new law most likely applies to ALL institutional investors, including pension funds. This means that “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.”
This is a HUGE step forward in the crypto sector. Oh, has anyone seen the U.S. SEC around lately, or are they still scouring the dictionary for the definition of digital assets? More below.
Bill Taylor/Fintek Capital
“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…”