Covid 19 changed how people can perform cryptocurrency transactions, which is now more regulated and taxed. Visit the https://cryptofolds.com/ for more information on bitcoin trading.
Many cryptocurrencies such as bitcoin are affected by this law because they can be used for illegal activity, like funding terrorist organizations and buying drugs and other goods on dark web marketplaces.
Ways how bitcoin is badly affected by covid 19 in France
Here is a list of examples of things that have been affected by covid 19 in France:
- All cryptocurrency exchanges must now register with a bank or a particular agency. If they don’t, they can get shut down by law enforcement agencies.
- Purchases using credit cards are no longer allowed. This means that no one can buy cryptocurrencies with a credit card or use credit cards to pay for anything related to bitcoin (bitcoin exchanges, etc.).
- All cryptocurrency trading is now declared as “industrial and commercial profits.” This means it’s taxable, and you need to report your capital gains at the end of every year, like when you sell stocks.
- Special agencies like the French agency for financial markets (AMF) now have access to every transaction made by any cryptocurrency exchange in France. This means they can control each trade and see how much money is sent where and who sent it. They also can see how many bitcoins are held by anyone at any time.
- Using cryptocurrencies to make donations for charities is also now banned.
6 Positives of covid 19 that affect bitcoin in France
- Covid 19 makes sure that bad people do not own bitcoins to use for terrorism and other illegal activity.
- Using cryptocurrency exchanges to buy or sell cryptocurrencies has been made more secure because of this law. This is because all businesses have to follow strict rules now, so there’s no way one can scam others.
- Currencies in France are now more robust because they are regulated, monitored, and taxed. This is good for the economy of France because the government will benefit from this law too.
- It makes transactions much more manageable because no one has to keep track of their bitcoin addresses anymore when buying something on an e-commerce website, for example.
- Covid 19 allows cryptocurrencies to be used as a currency or investment, so mainstream usage for bitcoins will increase. This means that business owners will now know what bitcoin is and how they can use it too without worrying about if it’s legal or not.
- It lowers the risk of getting scammed when trading with people from other countries, as you can now see their identity and everything they do with their cryptocurrencies.
Some adverse effects of covid 19 on bitcoin in France
- People who use cryptocurrency exchanges for their daily activities now have to pay more taxes as they need to declare how much money they make from the businesses every year.
- Using bitcoin as a means of payment has been banned, which means there’s no way you can buy something with bitcoins from an e-commerce website unless it’s from another country.
- It’s harder for cryptocurrency exchanges to keep track of their money and users because government agencies now have access to every transaction they make, which means there’s a chance of getting scammed if you use an unregulated exchange.
- It makes transactions slower when using bitcoins in France since you can’t buy anything with cryptocurrencies easily anymore.
- The process of setting up a cryptocurrency exchange now takes months. This is because the new law requires them to do thorough background checks on their owners, founders, etc. before they can be made public.
- Lowered trust in cryptocurrencies as people fear it will affect or make illegal transactions even more difficult.
Conclusion:
Covid 19 has made buying and selling bitcoins more difficult, but on the other hand, it’s also increased the security and transparency of bitcoin transactions. There is a considerable possibility that fewer people will use cryptocurrencies due to these new laws. Still, some business owners might start accepting them as payments too. So, from the above information, you will know the impacts of covid 19 on bitcoin in France.
