AMF, the financial markets regulator in France, is reportedly set to announce legislation on ICOs in a bid to encourage startups to fundraise via Initial Coin Offerings.
This regulatory framework prepared by AMF was confirmed by the French Ministry for the Economy and Finance. According to the ministry, there’s a need to hold preliminary consultations between associations and stakeholders when it comes to recognizing ICOs as one of the legitimate ways of raising funds and investments in the country.
The Ministry of Finance sources say,
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,
The framework to be introduced would aim to establish a system by which those issuing ICOs would receive a license from the regulatory body, AMF, before they are allowed to operate. According to AMF, those who choose to proceed with their operations without a valid license would not be penalized or banned, but investors wouldn’t get a guarantee when it comes to usage of funds raised. This will also mean that the licensed companies will gain trust from investors, raising their chances of running a successful camping.
These reports about introducing a framework for legitimizing ICOs seems to be a 180-degree shift in policy, following a ban of crypto-assets and cryptocurrencies by AMF on March 15th. Those affected were found to be marketing crypto-assets and cryptocurrencies as investment tools in France.
This abrupt move by the French government towards the support of Initial Coin Offerings is drastically different from the stance that the SEC (US Securities and Exchange Commission) has taken, as they look to crack down entirely.
What’s your take on the French regulatory body introducing a framework to legitimize ICOs, even after considering some of them unlawful in the recent past? Do you think other regulatory bodies across the world will follow suit? How will this affect the market? Let us know your thoughts.