French Lawmakers Announce New Legal Framework For ICO Token Model
French lawmakers have made a significant move concerning ICOs. This week, lawmakers passed a law establishing guidelines for ICOs, according to Finance Minister Bruno Le Maire. Le Maire identified the law as “Article 26” on Twitter and stated that it has been adopted by a parliamentary committee as part of President Emmanuel Macron’s broader plans to enhance business growth and transformation.
The official Twitter announcement, translated, stated:
“A legal framework for ICO is created. This legal framework will attract innovators from around the work #blockchain…”
Now, the Authorite des Marches Financiers (AMF) can approve and issue business permits for those who intend to float ICOs in the country. However, the caveat is that the project must “provide specific guarantees for investors.” Further, issuers are expected to provide full disclosures to the AMF so that buyers can make informed decisions about the ICOs.
This move is part of a wave by President Macron to transform the country into a business haven, including businesses that deal with cryptocurrency. Recently, Macron launched the Action Plan for Business Growth and Transformation (PACTE), which aims to make it easier for companies to operate in France. It also provides a legal framework for fundraising by way of token sales.
On September 12, the AMF started public consultations concerning the new ICO law. It also reduced cryptocurrency takes by more than half, to a still high 19 percent. The moved has been seen as positive and a way for cryptocurrency and blockchain to develop.
One law firm discussed the aforementioned framework, stating that it
“provides a definition of tokens, indicating that a token is intangible property representing, in numerical form, one or more rights that can be issued, registered, conserved or transferred using shared electronic registration mechanisms that facilitates the identification, directly or indirectly, of the owner of said property.”