France Introduces ICO-related RegulationSeptember 14, 2018
This week was a major victory for France-based Crypto firms as the country’s legislature set out new guidelines for initial coin offerings (ICO). The new law will protect the interest of investors and make it easy for them to decide on the project they want to invest in. Under President Macron, Paris has been attempting to create a Crypto-friendly ecosystem as it recently reduced taxes on profits made from trading the virtual currency by more than 50 percent.
French Parliament Passes A New ICO Law
Parliamentarians in France have passed a law for the initial coin offerings (ICOs) project in the country. According to the nation’s Finance Minister Bruno Le Maire, the parliament has adopted Article 26. The new law is in line with President Emmanuel Macron’s plans to support business growth in the country and transformation.
The new legal framework is a major victory for Crypto firms, their customers, and the country in general. More people will now participate in ICO projects making it easy for business owners to raise the required capital. Mr. Le Maire has noted that the new law will also make the country attractive to Crypto-linked businesses and will see more innovators flock to the country.
French Financial Regulator To Have More Responsibilities
The new law will give Authorité des Marchés Financiers (AMF), the country’s financial regulator the role of approving and issuing permits to all ICO projects in the country. However, only projects that will provide certain guarantees for investors will be allowed to launch in the country. The new legislation will also see businesses give full disclosure to the regulator. This will give the buyers a chance to make informed decisions when investing.
For some time, AMF has complained about the lack of clear Crypto regulation in the country that has exposed the buyers to many risks. Moreover, the authority noted that these risks also spread to ICOs increasing the possibility of making losses. The regulator also feared that the digital assets could be used in illegal activities such as terrorism and money laundering.
ICOs have become an important part of the Cryptocurrency sector as it allows businesses to raise capital by creating new virtual currencies that are then sold to the public. Although ICOs resemble initial public offerings in the traditional stock market, they are not regulated making them ideal to start-ups attempting to circumvent bureaucratic red tape.
France Keen On Attracting Businesses
Since President Macron ascended to the presidency last year, he has been trying to transform the country and make it attractive to businesses, Cryptocurrency sector included. Under the Action Plan for Business Growth and Transformation (PACTE), an initiative he launched earlier this year, it has become increasingly easy for businesses, including Cryptocurrencies to enter the country.
The public consultations for the new law were started by AMF a few months ago. The country has been trying to create a conducive ecosystem for Cryptocurrencies. In July, the country reduced Cryptocurrency tax by more than 50 percent to 19 percent. The recent development in Europe’s third largest economy is an indicator that the country is determined to become a Cryptocurrency haven.