French regulators have granted a license to a French company to hold an ICO. The French Financial Market Authority granted the license. In a statement by the regulator, it said that it had granted a license to French ICO. According to the statement, the license was granted under the PACTE law. This law has created a regime where firms can raise funds using crypto assets. However, it clarified that only utility tokens, which are not classified as financial instruments, could be used in ICOs.
According to French ICO’s site, the ICO is going to occur from March 1 until June 1, 2020. The law regulating ICO’s in France came into effect in April 2019. This law aims to make financial processes simpler for well-funded and innovative companies that wish to operate in France. The PACTE law made it possible for firms to seek a license from the French financial regulator if they were planning an ICO.
For a company to be eligible, it has to come up with an informative document that adheres to guidelines created by the French Financial Market Authority. Besides that, it must create a system that allows the regulator to monitor assets raised via the ICO. Besides that, they must demonstrate that they can comply with all AML and anti-terror financial regulations in France.
The French regulator recently clarified that seeking approval for an ICO was optional. As such, those firms that do not seek approval will not automatically be considered to be operating outside of the law. Besides that, the approval is only granted for the ICO and not the issuer. As such, getting approval does not mean that the regulator has endorsed the project.
According to the regulator, approving an ICO does not mean that the regulator considers it appropriate to partake in the ICO. It only means that the issuer of the ICO has complied with some minimum guarantees under the law and its investors can understand their whitepaper. As a result, if anyone plans to invest in the ICO, they should conduct due diligence on the project.