France’s Financial Markets Authority (AMF) revealed on December 19 that it had authorized for the first time an initial coin offering (ICO).
The recipient of the AMF “ICO visa” – a digital currency fundraising platform dubbed French-ICO – met the minimum guarantees mandated by law, including a white paper investors could comprehend, as indicated by an announcement from the regulator.
ICO visas are a way to guarantee sales don’t bring investors undue risk. Applicants must show the AMF they have offered all important data about the sale, along with the risks associated. Approval isn’t an endorsement for the firm.
The regulator can only endorse public offerings for utility tokens, and an applicant should be a registered entity in France. They should likewise have a methodology for securing investor funds and follow strict anti-money laundering (AML) prerequisites. When approved, the ICO must occur within six months.
France passed one of the most extensive legitimate structures for digital currencies earlier this year. Dubbed as the PACTE law, it offers firms legal assurance in exchange for being regulated by the AMF. That incorporates an ensured bank account, along with the option to have a token sale in the nation utilizing the ICO visa.
AMF approval further enables a firm to market its sale and participate in promotional activities.
Registration is discretionary, however. Firms can still have an unregistered ICO in France, but they are not permitted to market the sale to possible investors.
Reuters detailed in July that the regulator was having discussions with three or four candidates for an ICO visa.
While the news was revealed on December 19, French-ICO got its visa on December 17. Slated to start in March, the sale is capped at €1 million (or $1.1 million), as indicated by its site. The visa runs out on June 1, 2020.
The AMF has been strict on cryptocurrency firms that have broken French law. The regulator recently restricted advertisements for digital currency derivatives and, in March, prohibited 15 digital currency sites that it considered had unlawfully ensured high returns on investments.