France’s stock market regulatory authority, the Autorite des Marches Financiers (AMF), today announced that it intends to create a new regulatory framework with regard to ICOs in the country.
The government has been promoting the idea, and with a collaborative effort with the AMF, France hopes to create a flexible set of guidelines through which companies could raise capital through ICOs.
The French government is taking a different stance on ICOs than the many other governments that have cracked down on the fundraising method, with some going as far as issuing a blanket ban.
Moreover, the proposal suggests installing a truly liberal optional authorization scheme, enabling companies to receive a visa for the purpose of launching an ICO.
The visa will confirm that the AMF has approved of the credibility of the operation, thereby providing a greater sense of safety for investors.
ACY Securities Supports ASIC’s Product Intervention OrderGo to article >>
However, companies that do not receive (or even request) a visa would still be able to launch their ICOs, albeit without the official credibility given by the French government and regulator.
How Safe is France’s ICO Regulatory Proposal?
France could become the new global center for ICOs, if the government continues to pursue such lenient and flexible conditions for companies and interested investors.
However the proposal begs the question – will the new regulations address the scams and fraudulent activities that have been prevalent in the ICO market over the past few years?
The AMF has just added 15 cryptocurrency investment websites to a blacklist, illustrating its commitment to maintaining a high level of safety for investors, and assuring the public that all ICO operations that will take place in France will be monitored and assessed for proper conduct and legitimate operational agendas.
France More Flexible than Other Countries
South Korea and China are two examples of such countries that have seriously hindered the ability of their citizens to invest in cryptocurrencies.
Both countries have banned ICOs, with China taking things even further and prohibiting any crypto exchanges from operating in the country, as well as blocking access to all cryptocurrency websites. The country has also begun to inform crypto mining operations to begin making an “orderly exit” from the country.
The AMF announcement mentions the US government’s actions against ICOs and specifies that France aims to take a different approach.