In France, FinTech startups will soon have the opportunity to easily exchange unlisted securities, relying on the "tamper-proof" protocol that is the blockchain. This is the main purpose of an order just adopted by the Council of Ministers.

France approves the transmission of securities not on blockchain

On the occasion of the Council of Ministers held last Friday, Bruno Lemaire revealed a new ordinance concerning the use of the blockchain protocol. The order in question allows the use of block technology for the transmission of unlisted securities. According to the Minister of Finance, this is a first in Europe.

Thanks to the blockchain, - a protocol intrinsically linked to the development of cryptocurrencies - the transmission of unlisted financial securities will be simplified, but especially secure, as Mr. Lemaire explains. The latter stated in a press conference that:

"The use of this technology will enable fintechs and other financial players to offer new solutions for securities trading - solutions that are faster, cheaper, more transparent and more secure. "

It should be noted, however, that this new measure is applicable exclusively to unquoted financial securities, whether unquoted shares and bonds, mutual fund units, or negotiable debt securities.

A French government pro-blockchain?

The adoption of this new order only confirms the great interest of the French government in blockchain technology. Remember indeed the statements of President Emmanuel Macron on the subject, explaining the benefits that the blockchain could bring on the securities market.

The Treasury, for its part, formalized last September its reform strategy to form new securities legislation, always in order to take advantage of the advantages of the blockchain. There is also the AMF's intention to regulate ICOs from 2018, or the French central bank's plans to work with blockchain startups.

The order is directly available on legifrance.