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France to approve crypto exchanges under new regulations

Maya Mandzikasvili | Jul. 17, 2019
France to approve crypto exchanges under new regulations

July 17, 2019, | AtoZ Markets - As the local media reports, the financial regulator of France the Autorité des Marchés Financiers (AMF) is poised to approve the first crypto companies under new rules on digital assets, some of the first such regulations to be launched by a major economy.

France’s authorities voice their opinion on digital assets’ adoption 

The French authorities’ attitude toward the crypto industry could be considered as contradictory and ambiguous.

Under the new rules for crypto exchanges in France, set to come into force late in July, crypto firms will voluntarily abide by standards on capital requirements and consumer protection and pay tax in France, in exchange for approval from the regulator.

Moreover, Paris first proposed rules to attract cryptocurrency issuers to France last year amid a boom for ICOs.

However, ICOs have since dropped sharply, as issuers of cryptocurrencies turn to other forms of fundraising such as initial exchange offerings, where issuers raise money over crypto trading platforms and exchanges.

Notable, that France has been also encouraging the EU states to issue their cryptocurrency regulations, according to the French Finance Minister Bruno Le Maire.

A new financial bill, the French parliament approved in April 2019, also included regulating some parts of the industry of cryptocurrency.

In May 2019, however, Francois Villeroy de Galhau the Bank of France governor outlined, that stablecoins are more promising compared to bitcoins.

Following the Facebook stablecoin announcement this summer, Francois Villeroy de Galhau, the Governor of Bank of France, revealed their plans to form a new G7 crypto task force to examine regulatory issues related to cryptos, including Facebook’s Libra. 

Crypto exchanges in France under local authorities scope

Anne Marechal, executive director for legal affairs at the Financial Markets Authority has stated, that France as a precursor will have a legal, tax and regulatory framework for crypto businesses.

She revealed, that the governmental authority has already spoken to three or four candidates for initial coin offering (ICO's) and several other crypto exchanges in France, including custodians and fund managers. Notably, that cryptocurrency is a subject to patchy rules across the world and remains mostly unregulated.

And France, by bringing it a new patch of crypto regulations could be the first nation bringing more clearness into the industry. 

At the same time some smaller or fewer innovative countries, including Belarus, Russia, and even Iran, have brought in specific laws. Major economies, on the contrary, have tended to apply existing financial rules.

Notable, that global scrutiny of cryptocurrencies has grown especially when Facebook unveiled its Libra project due to concerns among politicians and regulators all around the world over privacy, consumer protection and the potential for systemic risks.

Thus, the crypto industry representatives have called for regulation of the sector, in part because of a desire for legal clarity and because of the perception of respectability that accompanies such rules.    

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Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.