The ‘crypto-assets markets regulation’ (MICA) adopted by the European Union will enter into force towards the end of 2024. This arrangement has given the European crypto industry a cohesive sense of direction. Crypto markets are expected to gain momentum in Europe in the near future and France is expected to lead the crypto movement in Europe. France, the second largest economy in the EU with a gross domestic product of almost 3 trillion dollars, has taken important steps to become the crypto center of the union. It started to bear the fruits of this when important companies of the crypto world such as Circle, Binance and Crypto.com chose Paris as their European headquarters. The country even hosted events such as the Sixth Ethereum Community Conference (ETHCC), NFT Paris, Paris Blockchain week. So how did France become the crypto hub of Europe?
In fact, even before MICA was accepted, France had been trying to make Web3 work efficiently for a long time. The French government supports the cryptocurrency industry and blockchain technology. President Emmanuel Macron also sees crypto as a way to attract business to the country. While other countries tightened rules on digital assets, some even banning crypto, President Macron has embraced the industry.
French President Emmanuel Macron. Photo: ElyseeGovernment support for crypto in France…
In 2021, Macron announced France’s 2030 investment plan of 30 billion euros. Within the framework of this plan, which aims to invest in technology, France will also provide an important resource to Web3. With Web1 technology, only the contents could be accessed over the internet network. With Web2, which has become widespread since the 2000s, the ability to share content on the Internet or leave comments and likes on these contents has come. With Web3, ownership rights of the contents on the internet can be obtained with the technology of recording on the blockchain. In his statement to the French press, Macron said that Web3 has a potential that should not be missed, but also a necessity.
France’s support for crypto is not limited to Web3 investments. Among the most beneficial policies Macron has adopted are tax breaks on crypto profits and simplified bureaucracy. French Finance Minister Bruna Le Maire also announced that they intend to strengthen the crypto environment in the country with the regulations they will make. Maire said, “We want to make the European Union the world’s leading economic region in terms of structuring and organizing the crypto asset market. And we want France to be the center of the crypto-asset ecosystem in Europe,” he said.
The vibrant Web3 community in the country…
One of the main reasons for Macron’s investment in Web3 technology is the presence of a vibrant and increasingly prosperous talented Web3 community in the country. From the Paris Blockchain week to the NFT Paris and the recently completed EthCC, France is hosting a host of crypto industry-leading events that set the pace for the industry. This inevitably fosters activities while fostering ideas and relationships within local Web3 communities.
Paris has hosted many crypto events.France is also attracting crypto industry workers. The country ranks sixth in the world in terms of the number of blockchain developers. France benefits not only from its talent pool, which includes the best engineers available, but also its crypto-friendly lawyers.
Favorable financing environment…
Another important component of France’s growing dominance of the Web3 is the favorable financing environment. The crypto sector in France benefits from France’s wider tech scene. As of March 2023, there were 32 unicorns (private companies worth at least $1 billion) in the country.
At a time when US venture capitals are pulling back from crypto, French investment sentiment appears to be reigniting. Although the pace of venture capital funding in France slowed down in the first quarter of 2023, it is seen that big deals were signed in the general picture.
If we look specifically at the crypto sector, at least 1.3 billion euros has been raised for blockchain projects since 2017. This money is a sign that the amount of venture capital is showing little slowdown. Last year, Cathay Innovation and crypto wallet startup Ledger partnered to launch a Web3 dedicated fund for the first time in the country with a target size of €100 million. More recently, the French Ministry of Culture has committed €150 million to support ‘French cultural sovereignty’ in virtual environments. All these investments stand out as an indicator of the robustness of France’s capital markets.
Sources: Coindesk, Coinjournal, Zycrypto
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