For the past two years, French government has been closely following what is happening on the initial coin offerings (ICO) market. Two French government authorities, the Treasury and the Autorité des Marches Financiers (AMF) are now working on a draft law on the regulating ICO’s in the country. AMF which will enforce the regulation, will be responsible for compiling the list of issuers.
AMF also launched a special consultation to find the most optimal way to regulate the market. In the document, authority has offered three different ways for market participants to interact:
- ICO’s will receive recommendations from the regulator.
- ICO’s to be treated as public offers of securities.
- A full-fledged model of legislative regulation will be developed and ICO’s will have to receive approval from a watchdog.
Most of the 82 respondents choose the third option and would like to see a full regulatory framework for the ICO in France, while also asking for the new regulation to be optional. Now the Treasury and AMF will take time to study the results of the consultation before taking any further action.
At the same time, the French Treasury does not consider issuing a license as a panacea for scam projects. The public agency does believe that ICO’s can be used for money laundering while recognizing the need to create a regulatory framework. After all, the initial coins offering for many beginner projects is the only way to raise funds.
By Ekaterina Ulynova