15 November 2018, AtoZForex
Recently, Autorité des marchés financiers (AMF), the French market regulator has conducted a report on Initial Coin Offering (ICOs). According to the report, France is in minority of the global ICO market, with 15 ICO projects and 89 million Euros ($100M). France has accounted for 1.6% of global equity financing in 2017. The AMF emphasized a crucial role of ICO as one of the most common schemes of fundraising used by small companies. The AMF revealed that local ICO projects are planning to incorporate into other industries and expect to raise up to 180 million euro ($202.6 million).
Initial Coin Offering Statistics
Initial Coin Offering (ICO) is a brand new way of creating capitals using cryptocurrency. ICO is becoming more common as a fundraising tool for startup companies, as it helps to avoid regulatory compliance and intermediaries. According to the icorating.com portal report, The USA and Singapore, as they are the biggest ICO investors compared to other countries. This year the USA invested $393.7 million in 70 projects and Singapore supplied 57 projects with $574.8 million. The aforementioned reported, referred to the average raised funds , showing the best results to be with company registrations in Malta, Gibraltar, and Singapore. Such attribute might happen due to an openness to blockchain projects, and the legal changes enacted by the financial authorities in Malta and Gibraltar.
Some of the ICO-based projects are quite successful. Energi Mine, for example, employs artificial intelligence and the blockchain to manage the energy usage. However, there were some doubts concerning ICO’s legality and security, as fraudulent cases were detected among their projects. According to research Satis Group LLC conducted, around 80% of the ICO projects are scam. Many questionable ICO-based projects such as HyperPay, Befund, ParkByte, were published on deadcoins.com portal.
AMF emphasizes importance of the ICO regulation
The AMF emphasized, that lots of work should be done with regard to regulating ICO markets. France was one of the countries, which took the initiative to investors.
On September 2018, the AMF reported that 21 investment websites had been blacklisted. Some of the projects, according to the AMF, included multiple cryptocurrency-related platforms. Bruno Le Maire, Minster of Finance in France, has recently introduced the Business Growth and Transformation bill (PACTE) for taking control over illegal ICO activities, PACTE was sent to the Parliament for studying.
Le Maire, who had proposed a year ago to turn France into a “startup nation”, expressed his hope, that legal regulation of ICOs will “attract investors from all over the world”. According to the new regulations, any token issuance must be approved and licensed by the AMF and provide details on the issuer and investment opportunity.
The AMF referred as well, that the ICO industry still needs international cooperation, for the market to be regulated, given the cross-border character of the industry. Pierre Noizat, the CEO of Blockchain.io emphasized that The French government is staying “ambitious ” on making France an “ICO capital ” because “they do not want to miss out on the blockchain revolution”. Noizat pointed out to that his government is constantly pursuing solutions for known issues in todays market. “They are regularly speaking with French blockchain and crypto-entrepreneurs in France” to “understand its problems, and to regulate the market accordingly”, Noizat added.