If passed, the new law would oblige France-based cryptocurrency service providers to comply with stricter anti-money laundering rules, show that customer funds are segregated, adhere to new guidelines on reporting to regulators and provide more detailed risk and conflict of interest disclosures as a means to strengthen consumer protection.
Well, the AML part of control is what is being implemented more and more around the world, so it's not surprising. However, I think the separation of assets is positive, as is often the case with pension funds and other financial assets, where one entity is the manager and another is the custodian, which simply charges a fee for the custody of the funds. This means better oversight and greater security for investors.
All this talking about those who leave their funds in centralised entities, which we know is far from ideal, but it is what many people do and will continue to do.