France has adopted a new set of regulations for initial coin offerings (ICOs). French Minister of Finance and Economy, Bruno Le Maire tweeted out the news.
✅Article 26 adopté en commission #PACTE !
➡️Un cadre juridique des #ICO est créé. L’@AMF_actu pourra délivrer un visa aux acteurs respectant des critères de protection des épargnants
➡️Ce cadre juridique va attirer les innovateurs du monde entier #blockchain #DirectAN
— Bruno Le Maire (@BrunoLeMaire) September 12, 2018
The new regulations establish a legal framework that allows French institutions to use initial coin offerings (ICOs) as a means of raising capital.
The legislation will allow the French financial authorities, the Authorité des Marchés Financiers (AMF), to issue permits and approve companies looking to use ICOs as a means to raise capital. The ICOs will be required to submit information about the ICO to the AMF, giving investors a way to do their due diligence prior to making a financial commitment.
The regulations state that ICOs must provide investors with guarantees. They must also provide a clear definition of a crypto token.
They define a token as “an intangible property representing, in numerical form, one or more rights that can be issued, registered, conserved or transferred using a shared electronic registration mechanism that facilitates the identification, directly or indirectly, of said property.”
The framework is part of a larger effort by French President Emmanuel Macron to attract entrepreneurs and stimulate business development. It’s expected to protect investors and attract blockchain innovators from all around the world.
Following President Macron’s intention to boost the country’s economy, the new framework favors the cryptocurrency market, providing more safety for prospective investors while allowing innovation for new companies. It comes as no surprise, as earlier this year Le Maire referred to blockchain technology as a “revolution” which will “make the economy more efficient.”
The legislation is expected to go into effect by early 2019.