New French law allows life insurers to invest in crypto

Thanks to new French legislation, French life insurers are allowed to invest in cryptocurrency. This means that more than € 1.7 trillion in assets may be exposed to cryptocurrencies. The law was passed by the French legislators last Thursday, 11 April.
Even though it was not the specific purpose of the “Action Plan for Growth and Transformation of Enterprises”, in short the Pact Act, two articles in the Act now allow insurers to invest in crypto. In addition, the limits for such investments are being relaxed.
Joel Giraud, deputy budget manager for Emmanuel Macron’s La République En Marche party, said about the law:

This was not the primary purpose of the Pact Act, but insurers will now be able to offer products based on crypto assets. They will be able to do this through specialized funds,

For example, Article 21 of the Pact Act makes it possible for “specialized professional assets” to be used for life insurance. In addition, the limits for the amount of these credits have been relaxed.
Furthermore, Article 26b makes it possible that “property” that is registered on “distributed electronic ledgers”, also known as blockchains, can fall under these FPS credits.
Previously, such companies were not allowed to invest more than 10% of their assets in options that are not securities. That limit now appears to have been lifted.

Thanks to legislation, it is clearer for insurers in France whether or not they can invest in cryptocurrencies. The life insurance market in France is good for around € 1.7 trillion and could cause a large inflow of new money.