France has recently passed a new law implementing initial coin offering (ICO) guidelines to protect investors and hinder the potential use of token sales for illicit activities like terrorism financing.
The development was announced by the French Minister of Economy and Finance Bruno Le Maire on social media, as he noted Article 26 has been adopted in a parliamentary committee as part of the country’s plans to bolster business growth.
✅Article 26 adopté en commission #PACTE !— Bruno Le Maire (@BrunoLeMaire) September 12, 2018
➡️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
According to a translation of the tweet, the article creates a legal framework for ICOs, and will see the country’s financial regulator, la Autorité des Marchés Financiers (AMF), which has warned against illegal crypto companies, oversee the nascent industry by issuing operators a permit.
Under these new regulations, ICO operators will have to give the AMF details about their project and token sale, while providing “specific guarantees for investors” so these can make informed decisions before putting their money in the project.
Le Maire seemingly believes the new legal framework will help France become an ICO hub, as he touted in his tweet the “legal framework will attract innovators from around the world.” France has, as CryptoGlobe covered, lowered its tax on profit from the sale of cryptocurrency from 45% to 19% earlier this year.
Regulators throughout the world have been claiming ICOs need clear regulations as these can easily defraud investors. France introduced its guidelines shortly after a Belgian think tank, Bruegel, called for EU-wide cryptocurrency regulations.
In a recent meeting in Vienna, Austria various European Finance ministers revealed they aren’t going to rush to further regulate the growing cryptocurrency ecosystem, as they decided to wait for a thorough analysis made by European authorities.
As reported, Irish Finance Minister Paschal Donohoe was quoted as saying the European Union (EU) would “be acting carefully in this area.” This, as the lawmakers sided with the Financial Stability Board which earlier this year noted the growing crypto market isn’t a threat to the current financial system.
EU regulators have in the past revealed they were considering tightening crypto regulators over transparency concerns. France’s new ICO guidelines are set to improve transparency in the new fundraising method.