French Crypto Industry Gets Huge Boost As Country Approves Several Companies
Several crypto companies were recently approved by the authorities of France. The country is currently hoping to accelerate some of its plans in order to regulate this market and give more attention to the crypto world.
Earlier this year, the country’s regulator decided to launch a framework and the local parliament created a bill that would allow cryptos to be properly recognized by the French law. This way, they would have to pay taxes and the investors would receive additional protection, which in the interest of the French government.
According to Anne Marechal, the executive director of legal affairs at the French financial regulator (Autorité des Marchés financiers or AMF), France is a precursor on this kind of legislation. The country is creating its own regulatory and legal framework for the crypto industry and there are even some companies who are in talks to start Initial Coin Offerings (ICOs) there.
At the moment, the laws require any crypto exchanges and custodians in France to register with the AMF and to pass several tests. In order to offer their services there, they need to prove to the local government that they are up to this task. In fact, any activity linked to cryptos eventually has to talk with the AMF in order to be compliant to act in the territory.
The legislation of the country is currently getting very advanced. France, unlike most countries, already has some rules pertaining to ICOs (that do not ban them, such as the laws of India and China, for instance). The laws are still receiving amendments, but they are pretty evolved so far, especially when considering the local European background, which could be more open to cryptos.
Non-Compliant Companies Will Receive Fines
Obviously, when there is regulation, companies have to follow it, so any company that act in the country without being compliant will be fined. The fined will be expensive, according to the regulators, and the ones who fail to comply will either do it or continue receiving them.
It was affirmed, however, that the investors will not be reimbursed by any losses if they choose to invest in crypto. While France is pretty progressive when it comes to cryptos, Spain was the actual first country in Europe to do it. The country decided to tax its residents before any other country started it.
Europe is currently having a lot of discussions about the industry, most of them headed by France and Germany, two important members of the union. While rules vary from country to country, there is a clear trend of regulators cracking down on unregulated business.