France Cracks Down on Stablecoin Transactions Amid Digital Asset Governance Efforts

The French central bank is advocating for enhanced restrictions on stablecoin transactions, particularly those denominated in non-euro currencies, under the MiCA framework. The move aims to address the risks associated with the sector's rapid evolution and ensure that payment-related applications of digital assets are properly monitored.

Denis Beau, First Deputy Governor at the Bank of France, highlighted the challenges posed by internationally issued tokens and inadequate visibility into individual holdings. He emphasized the need for robust European alternatives to balance the concentration of US dollar-pegged stablecoins, which account for 98% of the global market share.

The parliament has also endorsed new disclosure requirements for private cryptocurrency wallets, mandating yearly reporting of specific self-custody assets valued over €5,000. This provision is part of a comprehensive anti-fraud legislation currently under consideration and aims to strengthen tax reporting transparency.