In an opinion piece for CoinDesk, Ken Timsit, managing director of blockchain company Cronos Labs, wrote that French President Emmanuel Macron’s efforts to make his country a leader in Web3 are paying off, with major companies including Circle, Crypto.com, and Binance, the largest crypto exchange in the world, selecting Paris as their European headquarters. France has hosted industry-leading events such as NFT Paris, Paris Blockchain Week, and EthCC, while Macron has also implemented policies like tax cuts for crypto profits.
Binance, the largest crypto exchange in the world, became the first major global exchange licensed to operate in France. France’s financial regulator granted Binance France a Digital Asset Service Provider (DASP) registration in May 2022, according to a Binance blog post.
“The registration of Binance France as a DASP is a key milestone for crypto in Europe. In particular, the new levels of protection for AML [anti-money laundering] will help grow crypto adoption in France and Europe," David Princay, CEO of Binance France, said in a statement. "Greater adoption will help bring better liquidity to the market, which will be welcomed by users and the community in particular.”
The number of people in France who hold or trade cryptocurrencies increased from approximately 2.57 million at the end of 2021 to approximately 3.76 million at the end of 2022, according to Statista.
"Having already inspired Circle, Binance, and Crypto.com to make Paris their base in Europe, France can point to three interrelated trends working in tandem to solidify the country's position as a leading hub of Web3 development," Timisit wrote. "In short, collaborative regulators, a massive talent pool and healthy capital flows are underpinning the country's Web3 industry and spearheading growth on a global stage."
Tax cuts on crypto profits have been "among the most beneficial policies" Macron has passed, Timsit wrote. He also praised the French government's simplified registration process with financial watchdogs.
"It's worth noting, these advances also came at a time when the U.K. announced plans to regulate crypto, marking a notable conscious push to distance itself from Europe and the pervading hostilities in the U.S.," Timsit wrote. "In an industry like crypto, where everything is constantly progressing, major players will seek to set up shop in a place with firm foundations. France’s readiness to welcome, introduce, and adapt to ever-evolving regulatory frameworks presents them as an attractive option and is already being noted by industry players."