On July 18, 2019, French financial regulator Autorite des march (AMF) will approve the first cryptocurrency companies based on new regulations that came into effect later this month. Anne Marechal, executive director of legal affairs at AMF, told Reuters on Tuesday that the regulator is communicating with "three to four candidate companies on the specific details of the ICO (first-time token issue), as well as several cryptocurrency transactions. All.
It is worth mentioning that the cryptocurrency companies that will be launched at the end of July will be the first batch of compliance companies approved by France since the introduction of cryptocurrency regulations in April this year. According to the chain of financial understanding, France's latest cryptocurrency regulations were issued on April 15, the law is called PACTE bill, the main management object is ICO enterprises and digital asset service providers (DASP). That is, both the ICO project party and the cryptocurrency exchange require a visa from the AMF.
The law states that the term “digital assets” includes tokens issued during the ICO period and virtual currencies defined by European laws (such as Bitcoin) are within the jurisdiction of the PACTE Act. If it is identified as a financial instrument, it is excluded from the system. To better protect the information security of French investors, the Act provides:
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1. The token issuer is obliged to become a legal entity established or registered in France;
2. Provide detailed information about the cryptocurrency, including all relevant information about the financing project and the company;
3. Establish a system for monitoring and protecting assets raised during the issuance period;
4. Comply with anti-money laundering and terrorist financing rules.
It is worth noting that the bill also stipulates that the ICO project party can also operate legally if it cannot obtain the AMF visa permit, but it can only be privately funded and cannot be publicly offered.
At the level of cryptocurrency transactions, the Act also clearly states that the Digital Asset Service Provider (DASP) should be licensed and placed under the supervision of the AMF. The term DASP has been extended in the definition of the Act, including:
1. An enterprise that holds digital assets for third parties;
2. Purchase or sell a digital asset service provider in fiat currency or other digital assets (broker/dealer);
3. Operating a digital asset trading platform (stock exchange);
4. Other digital asset services, such as receiving and transmitting third party orders, third party portfolio management, consulting, underwriting and placing
It is worth noting that the regulation emphasizes that service providers that provide digital asset custody services to third parties or purchase/sell digital assets in exchange for fiat money must be forced to register with AMF. At the same time, for these entities, AMF will verify the following (this part of the rules are mandatory) and make a decision after consulting the French Prudential Supervisory and Resolution Authorit:
1. The reputation and ability of company executives and shareholders;
2. The existence and implementation of anti-money laundering and terrorist financing procedures.
3. The possibility of certain funds investing in digital assets
Interestingly, Libra, the latest hot Facebook cryptocurrency, is also related to the country. Currently, France, the rotating presidency of the Group of Seven (G7), announced at the end of June that it will set up a stable currency project working group. And Libra, whose focus is to clarify the definition of "stable" cryptocurrency. In particular, you need to determine which tools are stable and how to determine their exchange rates.
Source: Finance and Economics Network on Finance