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.
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.”
“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.
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.
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