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Reuters reports that France is seeking to help protect investors by enacting a regulation on initial coin offerings (ICOs). The report does not present any proposed or forthcoming legislation, but it gives an idea of the direction that French regulators, and possibly governments around the world, will take.
With the boom of the ICO industry over the past year, most countries are doing one of two things: banning ICOs (such as China or South Korea) or exploring approaches. It seems that France sees regulation as a successful outcome, a path that will allow ICOs to continue operating while eliminating scams from the sector.
When it comes to crypto, there seem to be two main legal issues. The first is securities regulation and the second is tax directives. France is trying to solve both problems and hopes that the ICO regulations will encourage the cryptocurrency market to focus more on taxation. Fabrice Heuvard, a member of the French OIC working group on ICOs, said that "the community is ready to pay taxes as long as it is not confiscatory".
It is estimated that around the world, $ 22 billion has been raised through country offices this year. In France, only 15 OICs were launched, which raised 89 million euros. Some hope that clear regulations in France would convince more projects to be launched in the European country. The objective of the French laws would be to verify who is responsible for the issue of cryptocurrency, to determine if the issuers have an emergency plan in case of failure the project and to ensure that the ICOs are launched in accordance with KYC and Anti-Money. Anti-money laundering laws.
Earlier this month, the country's Prime Minister, Bruno Le Maire, tweeted that new technologies can not be regulated with the help of "old regulations".
You can not regulate a new technology with old regulation. This is why we have adopted voluntary agreements for intermediaries and #ICO # InterviewsAMF2018
– Bruno Le Maire (@BrunoLeMaire) November 13, 2018
Defenders of cryptocurrency seem divided as to the role regulations should play in the markets. Some people kiss them, others oppose them. Be that as it may, it seems that governments will want to get involved, especially to stop the prevalence of scams. Henry James, deputy managing director of Fincross International, reportedly said:
Many token issuers struggle against the prejudices associated with crypto-currencies: they are risky and offer opportunities for fraudsters.
This suggests that regulation could bring more market participants to cryptocurrency, in the form of people scared of scams. Recent actions by the United States Securities and Exchange Commission (SEC) have highlighted the need for clear government direction on ICOs. In recent weeks, the SEC has been found to be considering Erik Voorhees' participation in SALT Lending, an ICO for cryptocurrency loans. The SEC also sentenced and fined two international product organizations for launching non-registered securities. It seems that after years of "laissez-faire", regulations have been put in place.
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