France’s Autorité des marchés financiers is now prepared to license crypto-firms to raise initial coin offerings. However, reports suggest licensing will only take place once rules and regulations for the same are in place.
According to Anne Maréchal, Executive Director for Legal Affairs at Autorité des marchés,
“We are in talks with three or four candidates for initial coin offerings and exchanges are also discussing with several other cryptocurrency exchange platforms, custodian and fund managers.”
The Autorité des marchés financiers are considering aspects like building a legal, tax and other regulatory frameworks with respect to the industry, making France a “precursor” to countries who have not banked on the crypto-industry by not taking any decisions with respect to the crypto-ecosystem. In this regard, Frederic Montagnon, Founder of a New York-based crypto start-up, LGO, explained the reason behind exploring the offshore market,
“One of the worst scenarios for a startup is launching in a country that has no regulations for a specific industry only to see an adverse regulatory framework later imposed that jeopardizes your whole business.”
To define the standards for digital assets service providers, the French Parliament has adopted new amendments for the companies to abide by. Crypto-related firms will only be given the approval to run the exchange after they have agreed to adhere to French consumer protection and tax laws.