Finalized ICO Framework Could Attract Global Investors to France

Although the European Union has called for unified legislation, France has announced an independent framework for regulating Initial Coin Offerings (ICOs) which it believes would help attract investors.

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Although the European Union has called for unified legislation, France has announced an independent framework for regulating Initial Coin Offerings (ICOs) which it believes would help attract investors.

France announces a new regulatory framework for ICOs

France has passed a new legal framework for Initial Coin Offerings (ICOs) which comes as part of the proposed “Action Plan for Growth and Transformation of Enterprises” (PACTE).

Bruno Le Maire, France’s Minister for the Economy and Finance, announced via Twitter that France has accepted Article 26 – the Business Growth and Transformation bill (PACTE) dedicated to ICOs.

France’s new regulatory framework for cryptocurrencies was first presented in June to the Council of Ministers and was approved on September 12.

Bruno Le Maire, who is a well-known supporter of the blockchain technology and cryptocurrencies, hopes that the new regulatory framework for ICO attracts investors from around the globe as well as protect French investors.

Le Maire stated that the new legal framework has been put in place to provide protection and guarantees for investors.

According to Bruno Le Maire, the French stock market regulator Autorité des Marchés Financiers (AMF) is now capable of granting licenses to companies that want to raise funds through an ICO.

Furthermore, companies looking to launch ICOs would need to apply for a license from the AMF and would be required to submit detailed information about their projects, including the specifications of their offerings to the AMF.

Investors will be able to conduct detailed studies on the companies, and their ICOS with the information which would officially be on the record.

France and the crypto industry

France’s new ICO framework comes just after Bruegel, the Belgian think tank Bruegel called for unified legislation on cryptocurrencies for the Europe Union after its members held meeting with blockchain experts to regulate ICOs.

Blockchain and cryptocurrencies have found a home in France. President Emmanuel Macron has shown a positive outlook towards cryptocurrencies, with his proposal of transforming France into a startup nation.

France’s Minister for the Economy and Finance, Bruno Le Maire introduced the PACTE bill in March this year, stating that France was ready for a “blockchain revolution”.

Regardless of the seemingly favorable environment, France has also made tightened regulations on crypto taxation.

In May, the French Council of State clarified the specifics of Bitcoin taxation in France, moving the taxes charged for Bitcoin trading from a progressive taxation (14 – 45%) to a fixed tax rate of 19%.

The need for an ICO regulatory framework

The relative ease involved in launching an ICO has seen countless attempt companies attempt to leverage them for fundraising, with a great percentage of such projects turning out to be failures.

LiveBitcoinNews reported in August that investors had lost $100 million to ICO exit scams. Also stating that the majority of the projects suffer huge devaluation as they were first brought to market.

In May, Valerie Szczepanik, an official with the US SEC said that although ICOs are raising huge amounts lot of money, investors need to be protected as a majority of the projects fail to comply with rules.

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