France’s Financial Markets Authority’s new rules are coming into force in late July and a bunch of cryptocurrency-related businesses are already in talks for approval.
The new rules will see companies issuing initial coin offerings (ICOs) abide by the financial watchdog’s new rules. The standards include things like capital requirements, consumer protection and that these businesses should pay tax in France.
Speaking with Reuters, Anne Marechal, executive director for legal affairs at the Financial Markets Authority, revealed the watchdog is in talk with roughly four ICO candidates at the moment as well as several cryptocurrency exchange platforms, custodians and fund managers. “France is a precursor,” she said. “We will have a legal, tax and regulatory framework.”
These new rules were first proposed in 2018 when there was a rise of startups and other companies funding their growth through ICOs.
France’s Financial Markets Authority is far from the only organisation to issue new rules regarding ICOs and cryptocurrencies.
For instance, the European Securities and Markets Authority (ESMA) released its advice to the European Union Institutions on the topic in January this year. The advice aimed to explain the existing rules regarding crypto and to offer insights as to where these rules could be amended.
Some governmental bodies have also expressed concerns about ICOs. For example, the Securities Commission Malaysia (SC) cautioned investors against backing unauthorized ICOs in early July. The warning came after an increase in queries and complaints regarding fundraising through issuing digital tokens.
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