Financial Authority in France has introduced ICO regulations in the country for the safety of investors. This was made known by the French Minister of Economy and Finance, Bruno Le Maire, in a recent tweet.
ICOs and Inherent Benefits
Initial Coin Offerings also know as ICOs are means adopted by most cryptocurrency-based projects or startups to raise fund and also a way to gain the attention of the cryptocurrency community. This is done through sales of token which makes individuals who purchase this a stakeholder. The tokens can later be traded for other cryptocurrencies or real money when the value rises/declines.
Cryptocurrency industry has seen growth through ICOs. Many cryptocurrency startups have evolved through ICO offering. Notably, 6 billion dollars was raised through ICO in the European Union in 2017 for the development of the cryptocurrency firms. There is Expectation of greater amount for 2018 despite the bearish market.
Despite the positivity that surrounds the Initial Coin Offering in the cryptocurrency space, it has been covered by a shadow of negativity that makes many wary of the industry, and make many enthusiasts victims of scams.
Fake ICOs has made many in the cryptocurrency space to lose their investment to dubious individuals in the cryptocurrency space. Solving this menace is one of the many goals the community of developers are into, as institutional investment and acceptance are aimed after.
Countries interested in the cryptocurrency industry and seeking to annex the benefits of the cryptocurrency has dived into exploring a safe landing for Initial Coin Offerings for its citizens in their country. Notably, the European Union has been in the race of providing a haven for cryptocurrency investors through regulations of ICO.
France Set Things Straight Regarding ICOs
France has been relatively less prominent in adopting cryptocurrencies. However joining the crypto race, the country earlier in June started a plan to introduce a special regulation for ICOs in the country. This was aimed at making the country a haven for cryptocurrency and blockchain technologies.
According to the tweet, the French Minister of Economy and Finance, Bruno Le Maire, said that the legislative arm of the government of France had approved the special law for initial coin offering in the country.
This law will aid the French Financial Authorities, the Authorité des Marchés Financiers (AMF) to approve and issue permits to companies that are interested in taking advantage of the public sale to raise funds for their projects.
Notably, the French regulations differ from other countries such as the United States and Switzerland that are adopting existing laws for its cryptocurrency industry. So also the introduction negates the plan of the European Union for a collective law for Initial Coin Offering for the EU.
Also, to make France more cryptocurrency friendly, the country has slashed Cryptocurrency Tax Rate from 45% to a flat rate of 19% on crypto gains.