France’s financial watchdog, the Financial Markets Authority (AMF) has announced plans to implement a new set of rules that will govern bitcoin and crypto-based businesses in the region. The regulation is expected to go live later this month, and it takes care of essential pain points like consumer protection, tax remittance and capital requirements, reports Reuters on July 17, 2019.
French Regulators Enact Amenable Crypto Laws
Per sources close to the matter, these are exciting times indeed for blockchain and cryptocurrency-linked startups in France, as the nation’s financial authority is set to roll out new guidelines before the end of July.
Reportedly, the rules require crypto-related startups to have a certain amount of capital in their coffers and voluntarily operate in-line with standards that foster consumer protection, tax remittance in France and more. According to the AMF, firms that abide by the set rules would be approved to do business in France and conduct initial coin offering (ICOs) if they so desire.
Commenting on the development, Anne Marechal, executive director for legal affairs at the Financial Markets Authority reiterated:
“France is a precursor. We will have a legal, tax and regulatory framework. We are discussing with about four potential ICO organizers.”
France Setting the Pace
Nations like Malta, Switzerland and even Gibraltar have become hotbeds for initial coin offerings (ICOs) as well as other crypto fundraisers and investment schemes.
The French government on the other hand has also maintained a somewhat liberal stance towards bitcoin and altcoins in recent times.
Earlier in January 2018, BTCManager informed that France’s finance minister, Bruno Le Maire, had mandated the country’s central bank chiefs to formulate new robust regulatory frameworks that would curb the activities of bad actors.
In March 2019, the French National Assembly passed the PACTE law (Loi PACTE), a bill comprising of a variety of acts aimed at transforming the nation’s economy.
The PACTE law called for the amenable regulation of the French cryptospace to attract innovators from around the globe who are ready to play by the rules conduct ICOs and crypto businesses in France.
More recently, in April 2019, Le Maire stressed the need for the implementation of uniform cryptocurrency regulation in the entire European Union, to enable the region to remain at the forefront of innovation. He noted.
“I will propose to my European partners that we set up a single regulatory framework on cryptoassets inspired by the French experience,”