France to adopt legal framework for ICOs
France proved itself to be a leader when it comes to the introduction and actualization of a key framework, targeted at the proper regulation of initial coin offerings, or ICOs. A key framework aimed at ensuring a well-governed and closely monitored procrss was approved by the National Assembly (Special Commission Committee). It was also reported by Les Echos, that “Article 26” is now adopted.
What does the new French Article 26 means for ICOs?
The subject of the “Article 26” is mostly focused on establishing a target legal framework that enables new companies to raise funds using cryptocurrencies, along with an Autorité des Marchés Financier (AMF) Visa, which is optional.
The proposed legal framework is expected to be a very flexible one where qualifying ICOs are given adequate support from financial bodies as well as offering proper documentation for the ICO operations, just as they would in the case of a traditional initial public offering (IPO).
The adoption of the “Article 26” was proposed by Bercy who wants to make France the ICO capital worldwide. It looks likely that based on the massive adoption of the article by the majority that the National assembly will adopt it fully.
When “Article 26” is fully adopted, ICOs which comply with certain set standards will be able to apply directly for approval from the Autorité des Marchés Financiers (AMF). Getting approval from the AMF will help an ICO present itself as a legitimate innovation to its investors. This is likely to increase the level of trust and assurance investors have in the organization, which equates with serious and top quality investors getting involved in an ICO’s operations.
What Does This Means for an ICO Issuer?
A report has shown that the Special Commission is also looking to make it easy for an approved ICO issuer, to create fully functional bank accounts. While not impossible, opening a fully functioning bank account for an ICO was not clear-cut and or easy so far. With the adoption of the Article, account opening is expected to be relatively easy and legal for approved ICOs.
The French Government made its intention of creating and issuing cryptocurrencies publicly known earlier this year. Bruno Le Maire (Minister of the Economy) further supported this claim in his statement that “Our goal is to provide legal certainty for those who seek it, without hindering those who want to follow their own path. We have a rather liberal approach. We work for a flexible, non-dissuasive framework. At the same time, we are not naive either; we know that these products can be risky.”
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