When it comes to blockchain and crypto regulation, France hasn’t quite been at the forefront of innovation in the past. However, it has just taken a massive leap into the regulation world by introducing a new legal framework for ICOs. All things considered, this should make it easier for ICOs to be launched in the country.
The framework will make sure ICOs can open a bank account, while it also helps to provide investors with more information. This is similar to how investing in a traditional company or firm would work. This new legal framework will help the French ICO industry boom, providing companies with new ways of raising capital in order to grow and develop.
Autorité des Marchés Financiers Stamp of Approval
Under the new legal framework, the Autorité des Marchés Financiers (AMF) will issue a rubber stamp of approval that will create AMF accredited ICOs. Investors will be able to sift out the genuine and high-quality French ICOs from the slightly more dubious offerings that could be scams. It will work similarly to the UCITS regulation for European Funds, in the sense that the AMF accreditation will become the gold standard for ICOs in France – and hopefully Europe.
Due to Europe’s financial framework, these new accredited funds could then be passported into other European countries. If this happens, banks would be more likely to give the ICO a business account than had they not received the accreditation.
Europe Moving Towards ICO Regulation
The European Union is gearing up for a fresh round of talks about the regulation of ICOs, should the talks prove positive it could revolutionize the European ICO industry. France is a key member of the European Union, so there is a good chance that it has decided to show the other nations how it is done, by implementing its own sophisticated legal framework. Elsewhere in Europe, Poland recently introduced a ruling on how cryptos should be taxed. Nations around the globe have been pondering how to tax cryptos, as many tax returns have been incorrectly filed due to this uncertainty.
Investor Safety is Top Priority
These new regulations will mean that ICOs have to jump through some additional hoops in order to be listed, but genuine ICOs will be more than happy to do so. If an ICO is genuine, it will have investors best interest at heart and therefore it will be more than happy to spend more time on applying for the regulation. In turn, investors will be more likely to part with their cash and buy into an ICO.
Regulation is vital in ensuring the longevity of the blockchain and crypto industry, as it helps to keep investors safe. There have been a number of high profile crypto scams over the years, several of which we’ve previously taken a look at. So, these new regulations will help to minimize the damage scam ICOs can do to the industry and – more importantly – protect investor’s wallets.