According to local media, France is trying to become the friendliest jurisdiction for Initial Coin Offerings as their Ministry of Finance prepares legislation that will create a voluntary regulatory framework.
In a recent statement, they said that they have a liberal approach. Their goal is providing legal certainty for those who search it, without hindering those who are willing to follow their own path. Further, they told that they are working for a non-dissuasive, flexible framework, without being naïve. They know that these kinds of products can be risky.
Meanwhile, AMF, which is the French Financial Conduct Authority (FCA), is planning to take an innovative approach regarding the incentivized regulations.
Probably, the framework for ICOs will take an optional authorization scheme’s form, with or without AMF’s license. Whoever wants a license will have to provide guarantees to investors. However, unlicensed ICOs are not going to be banned, with France adopting a very different approach in comparison with any other regulator so far.
Naturally, a licensed ICO will attract more trust, especially if the process of license is fast and reasonable. This may affect what coverage they get, and also it can affect the investment attention they get.
On the other hand, an unlicensed ICO will naturally have to explain the reasons it is not complying with the reasonable guidelines.
Therefore, France seems to use those other laws where financial crime occurs through outright scamming or fraud, while the same time giving entrepreneurs the choice whether to explain to their investors the reasons they are not complying or to comply with ICO guidelines.
How can investors benefit from France’s legislation in comparison with SEC guidelines?
The SEC guidelines require an army of lawyers, a lot of money, huge forms and then many months or even years for the green light.
However, the main thing that investors are interested in is whether the team does actually have the experience they claim they have, and in the case there is a pre-operating company or a product, then how much were the revenue, profits, and is those numbers are true. The rest is secondary and investors can take them into consideration when they decide how much risk they are willing to take.