As per a Reuters Post, Financial Market's Authority (AMF), France's leading financial organization decides to launch an experimental regulatory framework for crypto firms at the end of this month.
The rules will allow crypto-related firms to voluntarily submit themselves to the national standards on capital requirements, tax orders, and consumer protection protocols in return for the exchange's approval.
Anne Marechal, who is the executive director of the legal affairs at Financial Markets Authority, stated that the solid crypto regulatory plan from the G7 presidency holder make France a precursor in the field. She said
"France is a precursor. We will have a legal, tax and regulatory framework. We are in talks with three or four candidates for initial coin offerings."
Apart from ICOs. AMF is also in discussion with some crypto exchange platforms, custodians and fund managers, Marechal stated.
As Reuter suggests, momentum to offer higher legal clarity for the small-regulated sector has seemingly been excited after the news of the upcoming Libra Crypto from the leading social media giant, Facebook.
In the recent G7 finance ministers meeting held at Chantilly, France, both France's Bruno Le Maire and the US's Treasury Secretary Steven Mnuchin are looking for a common ground related to cryptocurrencies. Facebook's plan to launch cryptocurrency remains stable despite ever-rising overseas trade concerns.
This is not the first time; France has launched this kind of regulatory scheme. In April 2019, AMF introduced a requirement for banks to open accounts for crypto firms that opt-in to being regulated. According to PACTE LAW, crypto exchanges and custodians have also expanded the choice to achieve some goals.
At that time, Finance Minister Bruno Le Maire proposed European Union to follow "the French experience" by following the PACTE's guide to building a "single regulatory framework" for crypto assets in the EU single market.
These fairly non-limiting legal measures were made to enhance the growth of small and medium-scale businesses. However, some of the governments, organizations or industry experts call explicitly for self-regulation or no regulation because they believe clearly-set rules about the sale, distribution, and trading of cryptocurrency can help in the growth of the industry.
Measuring the desire for regulation in the emerging industry is hard, and however, some believe that proper monitoring could bring higher integrity to the crypto firms. Those reluctant to court the unknown are going for dynamic jurisdictions to launch their offerings.
Frederic Montagnon, co-founder of LGO, one of the New York-based crypto exchange is looking forward to expanding its services in France told
"When you are an entrepreneur, the worst that can happen to you is to set up your business where there is no regulation, to see an adverse regulatory framework later imposed that jeopardizes your whole business."