October 19, 2019

French Life insurers can invest in cryptocurrencies

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Recently, the French government passed an Action Plan for Business Growth and Transformation (Pacte) Law that will allow life insurance companies to invest in cryptocurrencies.

The law is a new step in France’s economic transformation as it will simplify business creation, ease obligations concerning workforce thresholds and remove obstacles that usually overburden companies in every step of their development.

Essentially, the French government seeks to increase business development and this bill will do so. With the Pacte law, these companies will be able to invest in digital assets with no limitations. Reuters reports that 147 members voted for the bill with 50 against it.

Distinctly, a dual provision” of the bill suggests these companies can move into crypto via “specialised professional funds”. Furthermore, they will be able to offer life insurance policies through Bitcoin (BTC) and other assets. This is the first offering of its kind to exist in France. The government also thinks that it will be a popular provision.

Joel Giraud, deputy and budget manager of President Emmanuel Macron’s party La République En Marche, has also confirmed that the act allows insurers to invest in crypto through specialised professional funds, and enables them to provide life insurance policies in relation to crypto. Basically allowing insurance companies to invest in cryptosays Giraud.

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