Bruno Le Maire, the finance minister, reported that new laws for initial coin offerings (ICOs) recently have approved by french legislators. He said, “the Article 26 had been adopted in parliamentary committee in order to support the business growth and transformation under French President Emmanuel Macron’s broader plans.” Le Marie also mentioned, “A legal framework for ICO is created and this will attract innovators from around the world” in his Twitter.
The law enables the French financial regulator Authorité des Marchés Financiers (AMF) to give permissions to businesses involved in the flow of ICOs in France with concrete certainty for investors. Issuers should open to the AMF for buyers to come up with informed decisions about the ICO. The French regulator was doubtful about lack of obvious rules on token sales that can be potential problems of ICOs such as money laundering and terrorist financing.
Companies gain money by producing new digital coins and offering them to the public for sale in ICOs. ICOs are common stocks in public but without certain regulations, they can easily be used as illegal means.
France is trying to become a harbour for business including cryptocurrency. Early in this year, president Macron introduced the Action Plan for Business Growth and Transformation (PACTE), with the purpose of allowing companies’ operation easy and announcing legal guidelines for fundraising with token sales.
In July, the French administration reduced the cryptocurrency tax by more than half to 19 percent in order to boost the development of blockchain and crypto ecosystem. Furthermore, the AMF started public consultations to pass new laws which were discussed over few months.
Kramer Levin, a law firm, stated that the law defines a token as an intangible property that can be published, registered, maintained and transferred with mutual electronic registration mechanism to facilitate the identification.
Author: Jieun Lee