In a major U-turn, the French financial markets regulator AMF (l’Autorité des marchés financiers) is said to be drafting a legislation to regulate ICOs and encourage the new method of fund raising in the country. According to news edition Les Echos, the French Ministry for the Economy and Finance has confirmed that the regulatory framework would legalize fund raising through ICOs. However, the ministry has mentioned that it would consult with related organizations before moving forward.
Recently, AMF had announced a ban on 15 cryptocurrencies and websites facilitating investment in digital assets. If the bill becomes a law, ICO issuers can apply for a license from the AMF and then proceed with raising funds from the France market. Without a license in place, developers will not be able to raise money through ICOs. To receive license, the token issuer must agree to abide by a set of rules governing the usage of raised funds.
The Ministry of Finance sources stated
“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 naive either, we know that these products can be risky.”
Earlier this year, Switzerland released the guidelines for ICOs. Furthermore, the regulators in Spain are drafting a legislation that would encourage setting up blockchain based enterprises in the country. In Asia, Thailand and Cambodia are in the process of introducing laws that will govern cryptocurrencies and ICOs. The US regulators, however, consider cryptocurrencies and ICOs as security offerings and expect developers to register with SEC and CFTC.