Earlier this year, the French government approved Loi Pacte, a new law meant to improve the French economy through competitiveness. Following the rule, the French government also adjusted regulations for Initial Coin Offerings (ICOs). The French government has a different way of dealing with securities, and it regards all securities in the same manner.
But last year, the French government issued a law that will adjust the use of blockchain securities. With the new rule, France became the first government in Europe to take such a step.
Although the decree did not mention distributed ledger or blockchain technology, the language used meant that the government intends to facilitate security tokens.
When the AMF reviews the white paper of issuers after their offerings have been accepted, the ICO will be white-listed and the notice will be placed on the AMF website. But the while-list section on AMF’s website is still blank.
CEO of Equisafe, Bilal el Alamy, pointed out that the PACTE law in France is still new. He said that it is true that AMF has received some projects, but it could be working on them. He said AMF needs to analyze each of the projects to make sure each ICO deserves to be there. He noted that the process is a measure to keep the industry in the right order, although it would take a long process.
The AMF thinks the projects need to be scrutinized properly before listing anyone on its site. That way, it can wipe out those who are issuing ICOs for the wrong reasons.
El Alamy said,
“The Decree for the PACTE law is very recent, the AMF has probably received plenty of submissions that, I’m sure, they are currently analyzing. What I see from the market is that they are a lot of projects that are doing an ICO for the wrong reason and as the AMF is publicly giving an « opinion », I guess they are really challenging the projects and the teams.”
France Securities Regulator (AMF) does not need to get approval from the French government before accepting securities offerings. However, AMF has to review any application by an issuer before promoting an ICO.
They could take another option to get a license through PSAN approval. If they follow this approach, they will be under the watch of the AMF.
The AMF has the sole authority to supervise the approved service providers as well as the ICOs that have received Visa. If the ICO issuer did not conform with the rules of the AMF, they would receive sanctions from the AMF.
Sponsorship, patronage, and soliciting will not be allowed to service providers and non-subject ICOs, according to the AMF.
Those asset providers and ICOs that didn’t comply with the provisions of AMF will be sanctioned, and they will be blacklisted on the ICO platform. This means that those who are not able to promote an offering would not be able to generate any interest. Also, the offering will have low participation if AMF does not review it. As it stands, whatever ICO any issuer intends to promote should go through the AMF. Otherwise, it will not receive any approval by the AMF or attention from the public.
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