French Economy Minister Bruno Le Maire announced on his Twitter account the approval of a regulatory framework for Initial Coin Offerings (ICOs) across France. The European country becomes one of the first major economies in the world to create a clear legal framework around the ICO, which has been considered by the officials as an opportunity for the nation’s monetary ecosystem.
The special committee of the National Assembly of France charged with examining the draft law “Growth and Business Transformation” approved the document on September 12th. Article 26 of the bill establishes a legal framework for the issuance of tokens or cryptographic tokens, known as ICOs. This new ICO regulatory framework aims to encourage France’s positioning as a legally friendly country for ICOs while offering protection for investors.
“This legal framework will attract innovators from around the world,” wrote Minister Le Maire.
France adopted a friendly regulatory framework regarding ICOs (Initial Coin Offerings)
According to the approved document, the Financial Markets Authority of France may require ICOs to become a legal entity established or registered in France. Also, they must develop an effective policy for KYC, as well as a technological structure that guarantees the normal flow of the issued crypto tokens.
The French Financial Markets Authority will have the responsibility of creating a “white list” to communicate to the public which ICOs comply with the new regulatory framework, providing an “important guarantee” for investors, as the document states. In addition, it was stipulated that those tokens that are considered securities will continue to be subject to the legislation governing public offerings of financial securities.
France continues to advance in its friendly position regarding cryptocurrency and ICOs and the ventures associated with their underlying technology. Let’s remember that during April the Council of State of the French government reported that the cryptocurrencies would be considered as movable property, which implies the reduction of the taxes on digital assets from 45 to 19 percent.