France’s financial regulator, the Autorité des Marchés Financiers (AMF), today approved the country’s first application for an initial coin offering (ICO).
The offering from a company called French-ICO, which developed a platform for funding projects in cryptocurrency, was the first to be white-listed, and a notice is posted on the AMF website.
The watchdog’s approval will remain valid until the end of the subscription period, scheduled for June 1, 2020. The AMF explains that it only approves 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.
The AMF said earlier this year that they are in talks with three or four candidates for initial coin offerings (ICOs).
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Under the PACTE law, token issuers applying for a visa from the French regulator are required to provide a document that contains all relevant information on the proposed ICO. This information document and the marketing materials relating to the ICO should be accurate to allow investors to understand the risks associated with the offer.
The Pacte Law encompasses a very broad range of measures covering many aspects of all crypto-active players. The current laws require cryptocurrency exchanges as well as custodian providers to undergo a mandatory AMF registration and obtain a certification to be granted by the French watchdog. The AMF confirmed that it is already involved with other crypto-related operators such as exchange platforms, custodians, and asset managers.
France has previously introduced its own guidelines governing the ICOs and similar token sales earlier in 2018 and then proposed legislative amendments to put cryptocurrency-related entities under the legislative purview of its financial watchdog.
The new framework also comes with hefty fines for those who fail to comply, but will not reimburse investors for their losses as it happens with compensation funds that cover traditional investments.