France’s stock market regulatory authority, the Autorite des Marches Financiers (AMF), has today announced that it intends to create a new regulatory framework, with regard to ICOs in the country.
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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 much different stance on ICOs than many other governments across the globe, who have cracked down on the fundraising method, with some going as far as issuing a blanket ban on ICOs.
Moreover, the proposal suggests installing a truly liberal optional authorization scheme, enabling companies to receive a Visa, for the purpose of launching an ICO.
If a company receives the Visa, it further confirms that the AMF has approved of the credibility of the operation, thereby providing a greater sense of safety for investors.
However, companies who 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 regulators.
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.
When assessing France’s proposal for the ICO optional authorization scheme, it induces the question of the level at which the regulation in the country is working to address potential scams and fraudulent activities that have been prevalent with ICOs over the past few years.
However, France’s AMF has just added 15 cryptocurrency investment websites to a blacklist, illustrating their commitment to maintaining a high level of safety for investors, and assuring 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, who have seriously hindered the ability of their respective residents to invest in cryptocurrencies.
Each country has 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 announcement goes as far as to mention the recent US government’s hinderance on ICOs, and specifies that France aims to take a different approach on the practice