Reuters reports that France appears to help protect investors by building regulations on introductory currency offerings (ICOs). The report does not describe any proposed or future legislation, but it provides insight into the direction of French regulators, and possibly governments across the world, will take.
With the ICO industry exploding last year, most countries make for most of one of two things: They prohibit either ICOs (like China or South Korea) or explore approaches. It appears that France sees regulation as a good outcome, a path that allows ICOs to continue to operate while eliminating fraud from the industry.
When it comes to krypto, there appear to be two main problems. The first is securities regulation and the other is tax guidance. France seems to resolve both, and hopes that the ICO regulation will lure the crypto market to pay more attention to taxes. Fabrice Heuvard, a member of the French Joint Administration ICO Labor Force, said that "society is ready to pay taxes as long as they are not confiscating."
It is estimated that worldwide $ 22 billion has been raised via ICOs this year. In France, only 1[ads1]5 ICOs were launched, increasing 89 million euros, and some hopes that clear regulation in France would convince several projects to launch in the European nation. The goal of French laws is to verify who is responsible for the cryptocurrency issue, determine whether issuers have a contingency plan in case the project fails, and ensure that ICOs are launched according to the Knowledge Customer (KYC) and Anti-Money Whitewash (AML) laws.
Earlier this month, the country's prime minister, Bruno Le Maire, made it clear that the new technology can not be regulated by "old rules".
– Bruno Le Maire (@BrunoLeMaire) November 13, 2018
Cryptocurrency Attorney seems to be sharing the role of regulations to play in the markets. Some people embrace them, while some oppose them. Regardless, governments appear to want to be involved, especially in order to stop the spread of fraud. Henry James, Deputy Head of Fincross International, was quoted as follows:
Many token issuers struggle with the stigma associated with crypto curves: they are risky and current opportunities for fraudsters.
This hint that the regulations could bring in more market participants to cryptocurrency, in the form of people scared of fraud. Recent US Securities and Exchange Commission (SEC) measures have highlighted the need for clear public guidance on ICOs. In recent weeks, it has been found that the SEC is looking at Erik Voorhee's involvement with SALT Lending, an ICO for cryptocurrency backed loans. The SEC has also charged and fined two ICOs to launch unregistered securities, so it appears that after many years of "laissez-faire" regulations have come.