AMF, the French Financial Markets Authority, adopted a legal framework to oversee initial coin offerings (ICOs) and digital asset service providers (DASPs) in France. The PACTE draft Bill (Action Plan for Business Growth and Transformation) was adopted in the French National Assembly on April 11, 2019. Once enacted, the law will establish a framework for fundraising via the issuance of virtual tokens (ICO) and DASPs.
The regime covers digital assets not classified as financial instruments, giving rise to one or more rights and that may be issued, registered, stored, or transferred using a distributed ledger technology (or a blockchain). The law will enable project initiators to submit their information document to AMF for an optional visa, which will be issued on the condition that they meet certain requirements. The visa remains optional and the raising of funds without AMF visa will continue to be legal in France. However, issuers who have not received the AMF visa will not be able to use general solicitation. AMF will publish the list of ICOs that have received its visa. DASPs may be licensed and placed under the supervision of AMF. The term “digital assets” comprises tokens issued during ICOs and virtual currencies as defined by European law (such as the bitcoin). Financial instruments are excluded from this regime. This new optional status will cover a wide range of activities, particularly:
- Custody of digital assets for third parties
- Purchase or sale of digital assets against legal tender or other digital assets (broker/dealer)
- Operation of a digital assets trading platform (stock exchange)
- Other digital asset services such as the reception and transmission of third-party orders, third-party portfolio management, advice, underwriting, and placing on or without a firm commitment basis
Whether or not they choose to obtain the optional license, service providers that wish to provide digital assets custody services to third parties or to purchase/sell digital assets in exchange for legal tender are subject to mandatory registration with AMF. AMF may publish a “blacklist” of ICOs and digital assets services providers that do not comply with the regulations. It may also block access to fraudulent websites offering services in digital assets.
Related Link: Crypto-Assets Regime in France
Keywords: Europe, EU, France, Banking, Securities, Regtech, Fintech, Crypto-Assets, Distributed Ledger Technology, Blockchain, AMF
Previous ArticleIMF Report on 2019 Article IV Consultation on Euro Area Policies
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.
The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.
The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.
The European Banking Authority (EBA) published a methodological guide to mystery shopping.
The Australian Prudential Regulation Authority (APRA) released a letter to authorized deposit-taking institutions to provide an update on key policy settings for the capital framework reforms, which will come into effect from January 01, 2023.
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report that assesses the business continuity planning activities of financial market infrastructures or FMIs.
The Bank of England (BoE) published questions and answers (Q&A) on OSCA to BEEDS migration for statistical reporting as well a presentation from the project overview session held with statistical reporters.
The Basel Committee on Banking Supervision (BCBS) is consulting on a technical amendment to the Basel Framework to reflect a new process reviewing the global systemically important bank (G-SIB) assessment methodology.