The French Government Adopts A Financial Sector Bill
By Tyler Smith – Cryptocurrency Investor
France has adopted a financial sector bill to establish a legal framework for cryptocurrency service providers and Initial Coin Offerings (ICOs) as well as strengthening the powers of AMF, the regulator of the industry. Both mandatory and optional licensing is included for any operation looking to buy and sell Bitcoin.
The bill was launched back in October 2017, just before Bitcoin’s meteoric rise to almost $20,000, containing 70 articles along with regulatory and non-regulatory mechanisms and tax measures to be added to their Finance Bill of 2019. The bill gives the options for cryptocurrency service providers to be licenced under the AMF and its supervision. A company selling Bitcoin, or another cryptocurrency will fall under this section including crypto custodial services, brokers and exchanges. In addition to those selling crypto, organisations that offer crypto remittance, asset management, advisory and underwriting will be included, though obtaining the licence is optional.
The bill goes on to provide ICO issuers with the option to apply for approval from the AMF if they meet certain requirements. The requirements for issuers include legal incorporation or registration in France whilst providing ample information on the project, company and token. Whilst raising funds through the token sale, the issuer must provide a system to monitor and safeguard the assets collected. The ICO can exchange Bitcoin or any other cryptocurrency and is not restricted by the assets they can collect.
Up to this point, fundraising through the issuance of tokens not classified as financial instruments was not subject to any rules. With the adoption of the new bill, the AMF will have more authority over organisations buying and selling Bitcoin.
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