Macron’s snap election has created uncertainty in Paris’s crypto scene, as the industry fears a policy shift without clear crypto stances from other parties.
Throughout his seven-year tenure, his government has implemented a variety of measures to incentivize founders to establish their businesses in the rapidly expanding digital asset center of Paris.
Currently, the crypto industry in France may be required to operate independently.
The digital assets industry is contemplating a sudden shift in policy as a result of the center-right premier’s decision to conduct a snap parliamentary election on June 30.
Daniel Seifert, Coinbase’s vice president and managing director in Europe and the Middle East, stated, “It is difficult to predict what will happen next, as the other political parties do not have a specific stance on crypto.”
The presidential contest will not be conducted until 2027, and Macron’s five-year term will not conclude with the election on June 30 and the subsequent runoff on July 7. However, the right-wing National Rally party could lead a majority and appoint a new prime minister if electors are asked to elect a new National Assembly.
This composite government is not an anomaly in the annals of French politics. However, the party that assumes domestic leadership in July will be required to collaborate with the newly established European Commission regarding forthcoming crypto regulations.
At the forefront of the list is the Markets in Crypto-Assets law, which will establish the industry’s regulations upon its complete implementation after the year.
MiCA’s regulations regarding stablecoins will be implemented on June 30.
‘It created a lot of confidence for foreign actors to choose Paris. This is something that may disappear.’
—  William O’Rorke, ORWL
Francois Volpoet, a regional managing director at blockchain analytics firm Chainalysis, stated, “The extent of Macron’s legacy for the crypto industry in France is yet to be determined; however, his aspiration has consistently been to establish France as a significant crypto hub.”
The entrances were opened for investment in the sector by Macron’s administration in 2017. The government provided investors with incubation opportunities and favorable tax exemptions for start-ups. Consequently, the crypto culture in Paris was revitalized.
Paris is the location of numerous crypto unicorns, including Morpho and Ledger, and it is home to a diverse web3 culture. More than 100 crypto firms have been registered by the market regulator.
The capital’s most prestigious venues, such as the Louvre, the Ritz Paris hotel, and the palatial Palais Brongniart, the city’s former stock exchange, are where Europe’s crypto industry convenes on a regular basis.
Bruno Le Maire, the finance minister, and Jean-Noël Barrot, the digitalization minister, personally welcomed crypto titans such as Binance, Crypto.com, and Circle when they established their operations in Paris.
William O’Rorke, a lawyer at ORWL, a local law firm that represents crypto ventures, stated that “all of these players had access to the top level of the ministry of economy.”
“That is significant because it instilled a significant amount of confidence in foreign actors, allowing them to establish themselves in Paris.” This is a potential disappearance.
However, O’Rorke does not anticipate that the outcome of the June elections will result in immediate regulatory modifications.
The rules of which party to follow do not seem to affect the majority of industry participants.
Macron’s Renew party, which is represented in the European Parliament, secured only 15% of the vote on Sunday. Identity and Democracy, a far-right organization, dominated the surveys with a majority of over 31%. The National Rally party in France represents this faction.
Although the center is primarily located in Brussels, the crypto industry is attempting to determine the potential impact of the results on Sunday on the industry throughout the bloc.
Mark Foster, the EU policy lead at the Crypto Council for Innovation, stated that the minor shift to the right may result in a greater emphasis on growth and competitiveness over the next five years.
“This could result in a more enabling framework for policies that are conducive to innovation.”
The Green Party, which is on the left-wing, suffered a setback by losing 18 seats in the European Parliament.
“The European Parliament may reduce the emphasis on Bitcoin and the energy consumption of proof-of-work mechanisms,” stated Tommaso Astazi, the chief of regulatory affairs at Blockchain for Europe.
The elections also witnessed the return of several legislators who were instrumental in the development of EU crypto policy during the previous mandate.
Stefan Berger, a German center-right legislator, and Ondrej Kovarik, a Czech lawmaker, were both involved in the drafting of MiCA.
Astazi stated, “We will continue to collaborate with a number of our most trusted European Parliamentarians, with whom we have maintained a relationship for the past five years.”
