First ICO approved in France

by in Cryptocurrency News

France ICO legal

The French Financial Markets Authority for the first time approved an application for an initial coin offer.

The regulator’s website says that approval was received by French-ICO, which developed a platform for financing projects with crypto. The permit will be valid until the deadline for applications, which expires on June 1, 2020.

AMF emphasizes that companies interested in conducting ICOs can submit only one application within six months. Representatives of the department noted that they were negotiating with three or four candidates for holding a token sale.

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At the end of last year, the French parliament approved the rules for conducting ICOs. According to Law No. 2019-486 or Loi PACTE, which entered into force on May 24, ICO applications must have complete information about the project, contain marketing materials and other information so that investors can accurately assess the risks.

In addition, the issuer must be a company registered in France, implement mechanisms for monitoring and protecting borrowed funds, and also follow a policy of combating money laundering and terrorist financing.

Among other things, Loi PACTE requires crypto-exchanges, custodial services, and asset managers to register and be certified at AMF.

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Recall that the French authorities intend to levy income taxes when converting cryptocoins to fiat. Also, the French authorities are considering the taxation of primary coin offerings at a rate of 20%.