French financial regulator approves first initial coin offering
Updated: Dec 21, 2019
The French financial regulator, the Autorite des Marches Financiers (AMF), has approved the first ICO application in the country's history.
The AMF elaborates that it only approves the ICO proposal, but not the token issuer entity. France’s primary regulator detailed that interested issuers could apply to operate only one ICO over a period of up to six months.
The AMF said earlier this year that they are in talks with three or four candidates for ICOs.
Under the Plan d'Action pour la Croissance et la Transformation des Entreprises (commonly known as the PACTE law), token issuers applying for a visa from the French regulator are required to provide a document that contains all information concerning the proposed ICO. This information document and the marketing materials relating to the ICO must be accurate and allow investors to understand the risks associated with the offer.
The PACTE Law encompasses a very broad range of measures covering many aspects of all crypto players. The current laws require cryptocurrency exchanges as well as custodian providers to undergo a mandatory AMF registration and obtain a certification to be granted by the French watchdog. The AMF confirmed that it is already involved with other crypto-related operators such as exchange platforms, custodians, and asset managers.
France has previously introduced its own guidelines governing similar token sales earlier in 2018 and then proposed legislative amendments to put cryptocurrency-related entities under the legislative purview of its financial watchdog.
The new framework also comes with hefty fines for those who fail to comply, but will not reimburse investors for their losses as it happens with compensation funds that cover traditional investments.