New Rule of Engagement for Crypto Firms in France
Many countries are stacked with the hard choice on crypto, failing to make the decision on whether to ban it, regulate it or leave them unregulated. The French government is looking up to lure cryptocurrency companies into state established regulations. The country’s authority says cryptocurrencies would be issued in France as long as the industry accepts regulation.
In the meantime, there is still no particular country that has managed to set up successful cryptocurrency regulations. If France’s regulation works, it would become to the first country to regulate Initial Coin Offerings (ICO). French authority stated that a regulated cryptocurrency would improve the industry’s credibility to investors. The authority echoes it would issue certification for companies interested in obtaining them.
On the other hand, the French authority would tax any profits accrued on crypto regulated endeavors for registered companies. However, the crypto company in France is ready to pay tax as long as they are not confiscatory. The new rules attempting to regulate ICOs and the crypto industry slates to deploy early next year.
Need for a Regulated Industry
In France alone, 15 crypto companies and ICO projects raised 89 million euros as of now. About sixty-eight more firms are preparing for ICO. According to Impak Finance, a company hoping to raise funds via ICO, the approach is necessary for the industry. Many other startups warming up to raise funds through ICOs in the country to welcome the idea of regulation.
There are many other countries besides France seeking to protect investors by introducing a governing regulation on cryptocurrency. In the UK most ICOs are under regulation. However, the financial watchdog scrutinizes every ICO project for possibilities to get regulations.
Meanwhile, in the US, the Security and Exchange Commission wants to include ICO under its regulations. China and South Korea imposed a total Ban on cryptocurrencies fearing fraud and speculation risks.
Do you think the Initial Coin Offering and the Cryptocurrency Ecosystem at Large needs a government-issued Regulation? Leave a comment on this topic and let’s continue with the debate on twitter.