Autorité des Marchés Financiers (AMF) Grants France’s First Approval For ICO Application
Autorité des Marchés Financiers (AMF) Grants France’s First Approval For ICO Application
December 20, 2019
Autorité des Marchés Financiers (AMF) Grants France’s First Approval For ICO Application
Autorité des Marchés Financiers (AMF) Grants France’s First Approval For ICO Application
December 20, 2019

Autorité des Marchés Financiers (AMF), France’s financial regulator, granted the country’s first approval for an ICO application.

On December 17, it has been reported that the offering came from French-ICO, a company that has developed a platform for funding projects using cryptocurrency. The firm is the first to be white-listed and a notice has been posted on the AMF website.

However, Reuters reported in July 2019 that the AMF was in talks with three or four candidates for ICOs and that more could soon be on their way.

Anne Marechal, the Executive Director for Legal Affairs at the Financial Markets Authority, said:

“France is a precursor. We will have a legal, tax and regulatory framework.”

She added:

“We are in talks with three or four candidates for initial coin offerings (ICOs).”

Likewise, Frederic Montagnon, the Co-founder of LGO, a New York-based cryptocurrency platform, said:

“When you are an entrepreneur, the worst that can happen to you is to set up your business where there is no regulation, to see an adverse regulatory framework later imposed that jeopardizes your whole business.”

While French-ICO is the first company to receive approval, this support will remain valid until the end of the subscription period, which is scheduled for June 1, 2020.

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However, the AMF website also notes that although approval is optional (ICOs are still considered legal in France without approval), only those public offerings that have received the AMF approval may be marketed directly to the public in France.

The AMF also explained that it has only approved the ICO proposal, not the token issuer. France’s primary regulator detailed that interested issuers could apply for only one ICO over a period that may not exceed six months.

So, according to the AMF website, an ICO may be defined as a “fundraising transaction, which carried out through a Distributed Ledger Technology (DLT or “blockchain”) and resulting in a token issue.”

The source stated:

“These tokens can then be used to obtain goods or services, as the case may be.”

Moreover, the PACTE law, which is France’s new law on business growth and transformation that was introduced in April 2019, included a specific regime for ICOs. The law noted that optional approval would be given by the AMF, which is intended to promote the development of ICOs.

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Thus, the law points out that this does not apply to Security Token Offerings, but only to the issuance of utility tokens. Those who fail to comply with the new framework will face large fines.

Source: reuters.com | cointelegraph.com


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Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs with an experience of 1 year. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. Her interest lies in blockchain technology and cryptocurrency space, as she loves writing about blockchain and other blockchain-related articles. Currently, she is working on blockchain-based news, reviews, featured articles, and guides.
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