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AMF France, authoritie des marches financiers, the French regulator for the financial markets, posted on its official website details regarding the grant of the first initial coin offering (ICO) in the country. The regulatory approval is a new feature introduced recently by lawmakers and regulators.
According to AMF France, the new rules will be ensuring digital asset safety while making sure that companies follow the standard procedures for anti-money laundering practices. Due to regulatory restrictions on cryptocurrencies, Europe is looking at new ways to create a structured framework that ensures the safety of the consumers while minimizing the risks that can come out of cryptocurrency and blockchain technology.
With the new regulations, France will be creating and encouraging a crypto market, as opposed to its neighboring countries like Germany, which are still uncertain in accepting the technology. Currently, the only tokens eligible for optional visa, that are not considered financial instruments according to the definitions of the country, are utility tokens.
The first crypto-based public offering granted by the AMF is a French ICO that has created a platform for fundraising through crypto assets. The granted approval will last until 1st June of his year, as the ICO has joined the list of offerings that have already received the approval from the authority.
List of Conditions from Crypto-Based Offerings
The grant was accepted under a list of conditions, as stated in the published post, and the rules will apply to all ICOs seeking a public offering grant. The issuers must be legally incorporated as a legal entity that is established or registered in the country of France. The information of the company must be in accordance with the General Regulation guidelines of the AMF.
Additionally, the issuer must establish a process through which the digital currency and assets that are raised by the ICO remain protected and safe. And finally, the issuer also has the responsibility to ensure a system in which the company is fulfilling its obligations relating to any anti-money laundering and ani-terrorist funding guidelines.
The AMF claims that the visa grant will not determine whether the issuer should participate in a token offer, but simply that the issuer has met the minimum requirements to proceed with the process. The AMF has also added that the process is optional since initial public offerings without the AMF’s approval are legal but ICOs without the visa or with unlicensed service providers will be held accountable.