Following the recent ICO law, is France the new Cryptocurrency haven?
Bruno Le Maire, finance minister of France, on Wednesday passed a new law which laid down guidelines for initial coin offerings (ICOs). The new rules may turn the country into the next cryptocurrency haven.
Le Maire made the announcement via Twitter, that Article 26 has been “adopted in (parliamentary) committee.” Emmanuel Macron, the French president, has long advocated for the growth and transformation of business and technology. This law is expected to propel the country towards that objective.
“A legal framework for #ICO is created,” said Le Maire (tweet translated from French to English). He also tagged the Autorité des Marchés Financiers (AMF), the French financial markets regulatory body. Le Maire concluded the tweet by stating, “This legal framework will attract innovators from around the world #blockchain…”
✅Article 26 adopté en commission #PACTE !
➡️Un cadre juridique des #ICO est créé. L’@AMF_actu pourra délivrer un visa aux acteurs respectant des critères de protection des épargnants
➡️Ce cadre juridique va attirer les innovateurs du monde entier #blockchain #DirectAN
— Bruno Le Maire (@BrunoLeMaire) September 12, 2018
The financial regulator will be the issuing authority of permits that will allow businesses to float ICOs in France, as per the new law. However, this will only be permitted to projects that "provide specific guarantees for investors.” Coin issuers will have to provide complete information and documentation to the AMF, thereby giving investors a clear picture before making any investment decisions.
This was implemented following a slew of concerns that the AMF had over regulations on token sales “as an inherent risk factor of ICOs”, a point made in reference to the instances of money laundering, crypto-scams, terrorist financing, and other major financial crimes.
France has been going through a transformation under President Macron, and is slowly turning into a hub for businesses, especially ones that operate in the crypto-sphere. The Action Plan for Business Growth and Transformation (PACTE) was launched by the President earlier this year, aimed at allowing companies to conduct their operations in France in a comfortable and less bureaucratic manner. The project will also set the necessary legal framework required for investment on token sales.
The country’s crypto-industry has been going through a wave of positivity, and the recent ICO legislation is no different. Back in July, the administration cut taxes levied on cryptocurrencies by more than half to 19% in a major boost to crypto investors.
France's recent embrace of the crypto-world came a week after European ministers were given a report calling for regulation of crypto-exchanges and clearer guidelines for ICOs.
Image taken from Shutterstock
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