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France: Financial Regulator’s U-Turn – New Framework Could Legitimize ICOs

Initial Coin Offerings (ICOs), have moved important amounts of money the last year. Some countries banned them while others hosted them. Now, the French financial regulator AMF (Autorité des marchés financiers) is preparing to introduce a legislation that could legitimize ICOs in the country.

Could France Legitimize ICOs?

It seems that France will legitimize Initial Coin Offerings in Europe, even when in the past, the country called for regulations at the European Level. Apparently, the AMF is preparing a legislation about ICOs, that could encourage ICOs to settle in the country, reported the local news outlet Les Echos on March 15th.

Paris
Paris

The French Ministry for Economy and Finance was the one that confirmed that the country would recognize ICOs as a legitimate means of investment. That would be an important move in Europe. The continent is searching to regulate blockchain technology companies, cryptocurrencies and ICOs.

A source from the Ministry of Finance commented:

“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 naïve either, we know that these products can be risky.”

Some days ago, the AMF blacklisted 15 cryptocurrency websites, according to a press release uploaded by the regulatory authority. The new proposed legislation will contrast with AMF’s decision to blacklist these crypto-related sites.

The new framework would establish an authorization system to ICOs to receive a license from the AMF. Additionally, the ICOs that will not be licensed will not be closed or banned, but instead, they will be allowed to run. ICOs that will have the AMF license will provide certain guarantees to investors about their funds and how to proceed in case of problems.

France is differentiating itself from other important countries like the United States, China or South Korea. These countries have taken important measures to regulate ICOs. China and South Korea banned them from their countries and the US Securities and Exchange Commission imposed heavy regulations to ICOs.