AMF ( ‘Autorité des marchés financiers) is the authority for financial markets there granted ICO approval earlier this week. It gave the approval as conditional based on certain factors. The authority gave its approval based on certain conditions. These conditions tally with standard best practices the world over. It also demonstrates the need for simplistic rules for the activities within the cryptospace.
The new rules are to ensure the security of the digital assets to be issued, effective compliance with standard processes for anti-money laundering and Know-Your-Customer practices and legal registration within France itself.
This comes as the west has been lagging behind in cryptocurrency regulations as Asia has moved forward with rules and regulations of their own. Many are keen on entering the cryptospace but many governments haven’t come up with the right framework as of yet,
France will toe the path of the Germans when it comes to the allowance of anything regarding cryptocurrencies. They have also had issues with the Americans. The introduction of new taxes against US-based technology companies indicates friction between both countries. These new regulations are a wakeup call for the Americans. They are behind in the introduction of new cryptocurrency regulations as well.
Europe is Leading in ICO Approval in the West
The new regime of rules that the French have introduced shows that even though America is not willing to lead on anything that involves cryptocurrencies, Europe is willing to fill in the gap for the west but China has created a whole new set of standards. They shall dictate the pace for the rest of the world as regards the cryptospace.
Europe is has become a haven of sorts for the cryptospace. Each nation-state has its own set of rules concerning cryptocurrency-related entities.
This doesn’t mean however that consensus won’t be reached at the European Union level. It just means that there is a lot more latitude for operations of cryptocurrency-related projects in Europe. More countries will follow this model.
Meanwhile, the French have been independent in this sort of thing. It also is the first French ICO that has been approved. The ICO should take place between March 1, 2020, and June 1, 2020. As per the scope of the approval, the AMF has indicated that this is the minimal step required for such approval and it doesn’t constitute assessment.
Approval of the very first French ICO increases the possibility of adoption within the crypto space. The maturity of the cryptocurrency markets on a global scale will occur as well.