A few months after France rolled out regulations for the crypto industry, the country looks to set to license its first crypto firms and approve initial coin offerings (ICOs) seeking to raise funds from French citizens.
According to a Reuters report today, the French Financial Markets Authority is already in advanced talks with these firms, and we could get the first list of approvals when the rules finally come into force at the end of the month.
Regarding these potential approvals, Anne Marechal, executive director for legal affairs at the Financial Markets Authority told Reuters,
“We are in talks with three or four candidates for initial coin offerings (ICOs).” She added that they are also discussing with several other cryptocurrency exchange platforms, custodians, and fund managers.
Anne Marechal, in the same vein, also revealed what pattern France is using to regulate cryptocurrencies. She acknowledged that the country had created a “legal, tax and regulatory framework,” for the industry. This move according to her makes France a ‘precursor' for other nations who until now has done little to nothing when it comes to regulating the operations of crypto-related projects.
Moving forward, Frederic Montagnon, the co-founder of LGO, a NY-based crypto startup looking to launch its ICO in France, explained in the report why they are going offshore.
He narrated that one of the worst scenarios for a startup is launching in a country that has no regulations for a specific industry only “to see an adverse regulatory framework later imposed that jeopardizes your whole business.”
Meanwhile, as Stmarket.co related in an overview of France’s regulation for the crypto industry, the country will issue licenses to crypto projects in exchange for them complying with consumer protection and tax laws in the country.