France’s financial regulator has just approved its first initial coin offering (ICO) for release for the public and is the first time a regulator of this kind has even been granted in the European Union so let’s find out more about it in the crypto news today.
France’s Financial Regulator or the French Financial Markets Authority was the body behind the approval. In accordance with the previously passed and so-called ‘’French Pact Law,’’ the AMF has outlined the process that determines the organization’s stance on crypto and French ICOs. The first project that was up for approval is dubbed ‘’French ICO’’ and is the first official project that got the green light to proceed by the AMF. The regulator said:
“Only public offerings of so-called utility tokens, which are not considered as financial instruments, are eligible for this optional visa”
The agency explained that the assessment of the project in question doesn’t really constitute an assessment whether it has or it hasn’t appropriately participated in the token offer as the AMF explained:
“It means that in the context of this public offering of tokens, the issuer has provided the minimum guarantees required by law and that the white paper is complete and understandable to investors … The visa does not imply either approval of the appropriateness of the issuer’s project or authentication of the financial, accounting and technical information presented. Moreover, the AMF does not carry out any verification of the smart contracts linked to the offering and does not verify the adequacy of these smart contracts with the content of the white paper.”
The French ICO met the legal requirements in the country to launch an ICO and all of the associated domestic financial authorities had little to say on the point. The regulator continued:
“This approval is optional. In other words, ICOs without AMF approval are legal. However, ICOs that do not have visa and unlicensed service providers will be prohibited from solicitation, patronage and sponsorship activities.”
In the announcement, the AMF provided a list of minimum guarantees that the projects which want to launch an ICO should have to fulfill in France before they are able to offer their token assets to the public. The AMF added that the token’s creators are free to contact the regulatory agency to see how can they get approval for public sales of their assets.
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