France Passes the Most Progressive Law for ICO Framework
Earlier this week, France’s Minister of Economy and Finance, Bruno Le Maire announced in a tweet that the government had adopted article 26 of the Business Growth and Transformation bill (PACTE). PACTE is considered the most progressive and innovative framework dedicated to Initial Coin Offerings (ICO).
According to the document –
Companies currently lack the equity capital essential to their development. The PACTE will facilitate access to diversified funding (public listing, investment capital, crowdfunding and ICO). It will orientate French citizens’ savings towards companies’ equity capital to fund future growth and innovation. The Action Plan will provide companies with the resources they need in order to innovate. It will enable researchers to set up companies with the minimum of difficulty and simplify patent filing procedures for SMEs.
✅Article 26 adopté en commission #PACTE !
➡️Un cadre juridique des #ICO est créé. L’@AMF_actu pourra délivrer un visa aux acteurs respectant des critères de protection des épargnants
➡️Ce cadre juridique va attirer les innovateurs du monde entier #blockchain #DirectAN
— Bruno Le Maire (@BrunoLeMaire) September 12, 2018
The Minister also stated that the Autorité des marchés financiers (AMF), the French regulator for financial markets will be tasked with analysing the documents/white-papers and ensuring that scams and frauds are avoided. After their assessment and clearance, licenses will be provided to the companies, to begin with, their ICOs. Le Maire also hopes that the legal framework for ICOs in France will help “attract investors from all across the world.”
What is Article 26?
Article 26 relates to the creation of a French system to offer tokens to raise capital for a business. The ‘Initial Coin Offering’ (‘Initial Token Offering’), ie the fundraising via a shared recording device (in particular by means of the so-called technology ‘blockchain’ or ‘chain of blocks’) via the issuance of digital ‘tokens’, have developed dramatically during the year 2017. You can also download the discussion paper around ICOs by the AMF.
France is leading the Cryptocurrency Revolution 🇫🇷
Since the election of French President, Emmanuel Macron, France has emerged as a technology friendly nation and has been instrumental in converting France into a “startup nation.” Later in 2018, in line with Macron’s vision, Le Maire introduced the PACTE bill, which aims to transform and innovate the French economy, in March stating France was ready for the “blockchain revolution”.
2018 has been a monumental year for France. France has seen changes in rules surrounding cryptocurrency taxation while many other countries headed in the opposite direction, outright banning cryptocurrency dealings.
With the introduction of fixed taxation of 19% on Cryptocurrency trading, France is leading the cryptocurrency revolution for other countries in the EU ( European Union ) which are also thinking of adopting common cryptocurrency rules for their economies.
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