Institute for blockchain and crypto research opens in France

November 10, 2023 Coin Telegraph

The Institute of Crypto-Assets held a formal opening at the Léonard de Vinci center in the business district just outside of Paris.

On Nov. 8, the first-of-its-kind Institute of Crypto-Assets held a formal opening at the Léonard de Vinci center in the business district just outside of Paris.

The Institute will support and conduct research related to blockchain technology and cryptocurrencies. Its scientific board includes 11 experts from major French educational institutions, such as the National Center for Scientific Research (CNRS) and École polytechnique. A committee of 6 practitioners, including co-founder of Ledger, Nicolas Bacca, and founder of the crypto exchange Paymium, Pierre Noizat, will also oversee the work of the Institute.

According to Cyril Grunspan, the director of the Cryptoassets Institute, it will focus primarily on educational goals:

“Our goal is not to lobby but to create a forum for discussion on cryptoassets.”

Two lectures accompanied the opening: historian Jacques Favier spoke about the history of currencies up to Bitcoin, and cryptographer David Pointcheval ruminated on zero-knowledge proofs and anonymity. The Institute is going to hold such public events regularly.

France is actively pursuing a leadership role in Europe regarding digital economy and innovations. In September, the local telecommunications group Iliad revealed an investment of 100 million euros ($106 million) to fund the creation of an “excellence lab” dedicated to AI research in Paris. In addition to the lab, Iliad has acquired what it deemed as “the most powerful cloud-native AI supercomputer deployed to date in Europe.”

Amid the market crisis of the first half of 2023, French crypto businesses grabbed 27% of all the new investment deals struck in the fintech sector.

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G7 countries to launch AI code of conduct: Report

October 30, 2023 Coin Telegraph

Canada

The Group of Seven (G7) countries will agree on a voluntary AI code of conduct for companies developing AI to reference for mitigating risks and benefits of the technology.

The Group of Seven (G7) industrial countries are scheduled to agree upon an artificial intelligence (AI) code of conduct for developers on Oct. 30, according to a report by Reuters.

According to the report, the code has 11 points that aim to promote “safe, secure, and trustworthy AI worldwide” and help “seize” the benefits of AI while still addressing and troubleshooting the risks it poses.

The plan was drafted by G7 leaders in September. It says it offers voluntary guidance of actions for “organizations developing the most advanced AI systems, including the most advanced foundation models and generative AI systems.”

Additionally, it suggests that companies should publicize reports on the capabilities, limitations, use and misuse of the systems being built. Robust security controls for said systems are also recommended.

Countries involved in the G7 include Canada, France, Germany, Italy, Japan, the United Kingdom, the United States and the European Union.

Cointelegraph has reached out to the G7 for confirmation of the development and additional information.

This year’s G7 took place in Hiroshima, Japan, with a meeting held between all participating Digital and Tech Ministers on April 29 and 30.

Topics covered in the meeting included emerging technologies, digital infrastructure and AI, with an agenda item specifically dedicated to responsible AI and global AI governance.

The G7’s AI code of conduct comes as governments worldwide are trying to navigate the emergence of AI with its useful capabilities and concerns. The EU was among the first to establish guidelines with its landmark EU AI Act, which had its first draft passed in June.

On Oct. 26, the United Nations established a 39-member advisory committee to tackle issues related to the global regulation of AI.

The Chinese government also launched its own AI regulation, which began to take effect back in August.

From within the industry, the developer of the popular AI chatbot ChatGPT, OpenAI, announced that it plans to create a “preparedness” team that will assess a range of AI-related risks.

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Binance France director resigns, adding to list of exits from crypto exchange

October 19, 2023 Coin Telegraph

Binance

Stéphanie Cabossioras is at least the tenth senior executive to depart the crypto exchange this year.

Stéphanie Cabossioras has stepped down from her role as the executive director of Binance France, becoming at least the 10th senior executive to leave Binance this year.

In an Oct. 19 post on X (formerly known as Twitter), Binance France President David Prinçay confirmed Cabossioras’ departure and expressed his gratitude for her work at the exchange.

Nous remercions Stéphanie pour sa forte contribution à Binance France et lui souhaitons le meilleur pour son prochain défi.
— David Prinçay (@davidprincay) October 18, 2023

“We thank Stéphanie for her strong contribution to Binance France and wish her the best for her next challenge,” wrote Prinçay.

Cabossioras first joined Binance in April 2022, acting as head of legal at the French arm of the crypto exchange, before being promoted to Executive Director in November the same year.

Before joining Binance, Cabossioras was the General Counsel at Autorité des marchés financiers, the organization responsible for much of the financial regulation in the Canadian province of Quebec.

Cointelegraph contacted Binance for further context of Cabossioras’ departure but did not receive a response by the time of publication.

Binance’s France arm fell under local investigation in June, with the Paris Prosecutor’s Office citing “acts of aggravated money laundering” among a litany of other charges as the basis for the investigation.

With her departure, Cabossioras adds her name to a roster of at least 10 senior executives to leave Binance over the course of this year alone.

On July 6, three executives announced their respective departures, including; chief strategy officer Patrick Hilman, general counsel Han Ng and Steve Milton, Binance’s global vice president of marketing and communications.

Binance CEO Changpeng “CZ” Zhao addressed these departures on July 7, describing them as normal parts of his company’s evolution, while dismissing reports on them as FUD, an acronym that stands for; “fear, uncertainty and doubt.”

4. More FUD about some departures. Yes, there is turnover (at every company). But the reasons dreamed up by the “news” are completely wrong.

As an organization that has grown from 30 to 8000 people in 6 years, from 0 to the world’s largest crypto exchange in less than 5 months…
— CZ Binance (@cz_binance) July 6, 2023

Binance’s legal woes have only worsened following a number of high profile lawsuits made against it by regulators in the United States. In March, the Commodities Futures Trading Commission sued Binance, CZ and their affiliates for an series of alleged trading violations.

In June, the Securities and Exchange Commission launched legal proceedings of their own, suing CZ, Binance, and its affiliates for allegedly operating as unregistered securities broker, among other charges.

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French regulator sees DeFi as ‘disintermediated,’ not ‘decentralized’

October 13, 2023 Coin Telegraph

Coin Telegraph

The Autorité de Contrôle Prudentiel et de Résolution concluded its consultation on the regulation of DeFi.

On Oct. 12, the Autorité de Contrôle Prudentiel et de Résolution (ACPR), part of the French Central Bank, published a summary of its public consultation on a regulatory framework for decentralized finance (DeFi).

The public consultation lasted two months, from April to May 2023, in response to the initial paper discussing possible regulations for DeFi in the country. External contributions nudged the ACPR to surprising revelations, especially regarding the structural persistence of centralization patterns:

“The ACPR therefore believes that the term ‘disintermediated’ finance is more appropriate than that of ‘decentralized’ finance.”

The operational risk of this “paradoxical high degree of concentration” in DeFi concerns the physical infrastructure hosting blockchain nodes, in which cloud service providers play a central role.

According to the summary, the “vast majority” of respondents advocate that DeFi should continue to be deployed on public blockchains rather than on private or permissioned ones. However, they admit that these blockchains need to be audited on a regular basis. Proposals to regulate intermediaries and certify smart contracts were also met with broad consensus.

In conclusion, the ACPR finds it “advisable” to draw up rules for the certification of smart contracts, define governance that would protect DeFi customers, and lay down measures supporting DeFi’s blockchain infrastructures.

On Oct. 11, the European Securities and Markets Authority (ESMA) also weighed in on the discussion on DeFi. In a 22-page report, the ESMA admitted the promised benefits of DeFi, such as greater financial inclusion, the development of innovative financial products and the enhancement of financial transactions’ speed, security and costs, while also highlighting its “significant risks.”

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CBDC lays foundation for new global monetary system: French central bank

October 4, 2023 Coin Telegraph

BIS

The first deputy governor at Banque de France calls central bank digital currency “the catalyst for improving cross-border payments.“

Representatives of Banque de France, the French central bank, have embraced the global perspective on the central bank digital currency (CBDC) discussion, touting it as the foundation of a new international monetary system.

On Oct.3, Denis Beau, the first deputy governor at Banque de France, called the CBDC “the catalyst for improving cross-border payments by enabling the build-up of a new international monetary system.” The official emphasizes the necessity of considering cross-border issue around CBDCs from the outset and not as an afterthought.

Beau sees several paths for developing a CBDC. The first is the development of common standards and interoperability between wholesale CBDCs and legacy systems. The second — promoted by the International Monetary Fund (IMF) and the Bank for International Settlements (BIS) — is the development of regional or global CBDC platforms. Wholesale CBDCs could be standardized to be exchanged directly on these platforms and perform payment versus payment and delivery versus payment transactions.

Beau cited the example of Project Mariana, which explored the possibilities of an automated market maker (AMM). The project, involving the Banque de France, the Monetary Authority of Singapore and the Swiss National Bank, successfully concluded in late September.

The official talked not only about the CBDCs but also about the tokenization of finance. He expressed his belief that the public sector must support the private sector more to enable the full potential of blockchain while limiting the risks. In his opinion, tokenized “central bank money availability” and tokenized assets are allies rather than competitors.

Bank of Korea to start CBDC infrastructure pilot

October 4, 2023 Coin Telegraph

BIS

The pilot will include private banks and public institutions, while the Bank for International Settlements (BIS) will support it with technical expertise.

South Korea joins a growing number of nations researching central bank digital currencies (CBDCs). The Bank of Korea (BOK) will launch the pilot project, exploring the technical infrastructure for a digital currency.

The joint announcement of the CBDC pilot by the BOK, the Financial Services Commission (FSC), and the Financial Supervisory Service (FSS) was published on Oct.4. According to the document, the project will assess the viability of a future monetary system grounded on "wholesale CBDCs."

The pilot will include private banks and public institutions, while the Bank for International Settlements (BIS) will support it with technical expertise. The BOK is going to test both retail and wholesale types of CBDC. Within the experimental framework of the latter, the banks will tokenize their deposits and circulate them in the network, monitored by the BOK, FSC and FSS. The live testing of the retail CBDC should begin right after the system setup in Q4 2024.

As it usually goes with the CBDC tests, the BOK notes that the exploring doesn’t equal the inevitable implementation. However, the First Deputy Governor of the FSS, Lee Myung-soon, called the pilot a step to the future monetary system:

"The BOK has persistently pursued technological research related to CBDC. This test, building upon past achievements, represents a significant step towards creating a prototype for the future monetary system."

These words resonated with a statement made by one of the chief executives of France’s Central Bank on Sept. 3. In his speech, Denis Beau, the first deputy governor at Banque de France, called the CBDC “the catalyst for improving cross-border payments by enabling the build-up of a new international monetary system.”

France, Singapore and Switzerland test cross-border CBDCs

September 28, 2023 Coin Telegraph

BIS

Project Mariana was developed under the aegis of the Bank for International Settlements.

The Bank for International Settlements (BIS) and the central banks of France, Singapore and Switzerland concluded a joint test of the cross-border trading and settlement of wholesale central bank digital currencies (CBDCs). The Banque de France issued the report on Sept. 28.

The so-called Project Mariana was developed by the Banque de France, the Monetary Authority of Singapore and the Swiss National Bank under the aegis of the BIS. It has tested the cross-border trading and settlement of hypothetical euro, Singapore dollar and Swiss franc CBDCs between simulated financial institutions using decentralized finance (DeFi) technology concepts on a public blockchain.

The concept works by using a common token standard on a public blockchain, bridges for the seamless transfer of CBDCs between different networks, and a specific type of decentralized exchange to trade and settle spot foreign exchange transactions automatically.

According to the release, the participants consider the experiment successful, though “further research and experimentation is needed.” It also makes a reservation about the experimental nature of Project Mariana, stating:

“Project Mariana is purely experimental and does not indicate that any of the partner central banks intend to issue CBDC or endorse DeFi or a particular technological solution.”

The day before the release of Project Mariana went public, BIS general manager Agustín Carstens spoke about the necessity of clarifying the national legal frameworks in those countries where the central banks don’t have a right to issue CBDC.

The BIS remains the principal promoter of cross-border CBDCs, with several pilot tests being run around the globe. Thus, in September, the central banks of Hong Kong and Israel released the results of their Project Sela, while Hong Kong Monetary Authority CEO Eddie Yue announced the expansion of the Project mBridge, which has already included the central banks of China, Thailand and the United Arab Emirates.

Binance still struggling to find banking partner in France: Report

September 27, 2023 Coin Telegraph

Binance

The local subsidiary of the world’s largest crypto exchange has suggested that customers convert all their fiat currency on the exchange to crypto.

After losing its euro banking partner, Paysafe, Binance France has proposed that its customers immediately convert all the fiat money they hold on the exchange into crypto, according to comments from an executive to local media.

The partnership between Binance France and Paysafe expired on Sept. 25. The latter supported Binance’s French subsidiary with infrastructure for euro deposits and withdrawals via SEPA bank transfers. The end of the partnership was announced in late June, but Binance France still has not found a new partner.

On Sept. 26, the company’s spokesperson confirmed to a French radio station, BFM, that at the moment, Binance France recommends users convert their fiat balances to cryptocurrencies for free as soon as possible:

“Binance is working as quickly as possible to onboard its new partners and will have an update in the very near future.”

As reported by users, a window with a suggestion to convert the fiat balance into crypto pops up automatically when they turn on the mobile application.

In late August, Binance customers had already been experiencing trouble with fiat withdrawals in Europe. At the time, the company revealed that it had suspended euro withdrawals and deposits via SEPA due to its inability to support them without a payment provider.

Cointelegraph has reached out to Binance for further comment but has yet to receive a reply.

Binance, which has come under scrutiny from law enforcement over its alleged failure to comply with financial sanctions against Russia, has faced ongoing regulatory issues for several months, particularly in Europe. On June 16, the exchange announced its departure from the Netherlands. Less than a week later, officials in Belgium also ordered the exchange to halt all services.

On Sept. 27, the company announced its full exit from Russia by selling its firm to a newly launched crypto exchange business, CommEX.

French telecom group invests millions in local AI industry

September 26, 2023 Coin Telegraph

Coin Telegraph

The French telecom group Iliad revealed it has purchased one of Europe’s most powerful supercomputers and plans to create an AI research lab in Paris, among other developments.

The French telecommunications group Iliad announced on Sept. 26 that it has plans to invest millions to build up the local French artificial intelligence (AI) industry.

Iliad said it already invested €100 million - $106 million USD - towards the creation of what it calls an “excellence lab” to be built in Paris that will be dedicated to AI research. According to the announcement a team of renowned researchers has already been set up and it will be spearheaded by Iliad chairman Xavier Niel.

Niel said an “entire ecosystem needs to be built up in France” and the research lab will be playing a role in that. The lab's main purpose will be to build general AI to bring to “everyone’s reach” and make AI research publicly available.

In addition to the lab, Iliad has acquired what it deemed as “the most powerful cloud-native AI supercomputer deployed to date in Europe.” An NVIDIA DGX SuperPOD equipped with NVIDIA DGX H100 systems has been installed at the company’s Datacenter 5 near Paris.

On acquiring the NVIDIA supercomputer Niel commented that:

“To have clout in the AI market, you need computing power. To have computing power you need supercomputers. And to have supercomputers you need to invest. To invest massively.”

The company says the DGX SuperPOD produces the power necessary to rapidly train large language models (LLMs).

Additionally, a subsidiary company of Iliad called Scaleway now plans to offer its clients access to a full suite of cloud-native AI tools, such as the ability to train various-sized models.

Damien Lucas, the CEO of Scaleway said with these tools European companies can “significantly” advance their innovations in AI to be competitive on an international level.

This news comes shortly after the president of the European Union, Ursula von der Leyen, announced on Sept. 13 a forthcoming initiative to help AI startups with accelerated access to supercomputers in Europe.

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France launches a certificate for finfluencers, including crypto

September 11, 2023 Coin Telegraph

Coin Telegraph

The country has introduced a non-obligatory Responsible Influence Certificate for those promoting crypto.

Amid the current pressure on so-called “finlfluencers,” promoting investment products in their blogs, France makes a step toward outright licensing them. The country introduces a non-obligatory Responsible Influence Certificate.

As revealed on Sept. 7, two French regulatory agencies, the Autorité des Marchés Financiers (AMF) and the Autorité de Régulation Professionnelle de la Publicité (ARPP) have jointly set up a training module for influencers in the financial sector.

The "Responsible Influence Certificate" has existed since 2021, when it was first time introduced by the ARPP. Over 1,000 French influencers have obtained it. Now the Certificate will have a special course for financial influencers, advertising equities, bonds, ETFs, funds, derivatives and other investment products, including even wine. Crypto-assets are also mentioned in the announcement.

To pass the Responsible Influence Certificate in Financial Advertising, one would have to obtain a minimum of 75% correct answers to 25 multiple-choice questions. While the Certificate doesn’t hold the status of an obligatory legal document, the ARPP would be able to withdraw it from non-complying influencers. Moreover, to obtain the Responsible Influence Certificate, one would first have to get the “general Certificate”, developed by the ARPP for all influencers.

In May 2023, the French Senate approved an amendment allowing registered cryptocurrency companies to hire social media influencers for advertising and promotional purposes. At the same time, in the United Kingdom regulators warn influencers that their promotions could be an offense punishable by up to two years in jail, an unlimited fine or both. And the European Consumer Organisation lobbies for a total prohibition on advertising crypto for influencers.

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