France has moved to introduce its own set of regulations regarding Initial Coin Offerings (ICOs) despite the calls for unified legislation in the European Union.
France Takes the Lead
Brussels-based think tank Bruegel recently called for unified EU regulations for the cryptocurrency market, placing special emphasis on ICOS and digital currency exchanges.
However, the proposition didn’t seem to faze countries that much, as France moved to pass on its own set of regulations shortly after.
The country’s Minister of Economy and Finance, Bruno Le Maire, tweeted September 12, that France has approved a legislative framework governing ICOs.
✅Article 26 adopté en commission #PACTE !
➡️Un cadre juridique des #ICO est créé. L’@AMF_actu pourra délivrer un visa aux acteurs respectant des critères de protection des épargnants
➡️Ce cadre juridique va attirer les innovateurs du monde entier #blockchain #DirectAN
— Bruno Le Maire (@BrunoLeMaire) September 12, 2018
Reportedly, the new laws are intended to provide protection and guarantees for investors. According to the accepted regulations, the financial authorities of the country – Authorité des Marchés Financiers (AMF), would have to approve and issue permits to the companies which have chosen to raise funds through an ICO.
Additionally, those projects would also have to submit detailed information regarding the specifications of their offerings to the AMF.
As such, potential investors will have the chance to conduct careful and fully-fledged due diligence on information which is officially on the record.
The Need for Legislation
According to the former White House Chief Strategist for acting US President Donald Trump, 90 percent of the ICOs have been a “disaster.” He reiterated the fact that they’ve blown far too many investors due to the lack of due diligence.
Earlier in May, an official with the US SEC said that ICOs are managing to raise a lot of money but also that investors do need protection. Valerie Szczepanik, the SEC’s very first Crypto ‘Czar’, said:
They’re raising a lot of money, but they’re not complying with the rules that are in place to protect investors.
In August, LiveBitcoinNews reported that nearly $100 million has been lost to ICO exit scams and that a wide range of the projects have lost the majority of their value since they have been first brought to market.
All of the above goes on to show that careful and effective legislation is necessary to ensure that ICOs fall within a well-thought regulatory framework which keeps the investor’s best interest in mind.
What do you think of France’s move to introduce ICO regulations? Don’t hesitate to let us know in the comments below!
Images courtesy of Shutterstock