Owing to a new law that has just been passed in France, insurance providers can now invest in cryptocurrencies and tokens. On April 11, the National Assembly of France passed a bill that aims at stimulating local business development.
For this sake, it will be possible to redirect savings from individuals to businesses. The bill was approved with 147 votes in favor and 50 against, according to Reuters.
The approved bill allows insurance providers to invest in bitcoin and other cryptocurrencies. There will be no limit on the investment amount. What’s more, owing to a dual provision of the bill, insurers can invest in cryptocurrencies through specialized professional funds, and they are allowed to offer life insurance policies exposed to cryptocurrencies. The impact of the new law concerns capital investment funds too.
The deputy and budget manager of the ruling party, Joel Giraud, confirmed the bill has been passed. However, he clarified that the part related to cryptocurrencies “was not the primary objective of the Pacte.”
The main aspects of the bill are related to privatization, which includes the sale of the state’s share in ADP, an airport group. The goal of this privatization process is raising money for an innovation fund.