French regulators are getting closer to approving the first group of cryptocurrency companies, in accordance with new rules slated to go into effect in late July, Reuters reported on Tuesday. Those new rules will provide regulatory approval for digital asset companies that voluntarily comply with the country’s standards for consumer protections, capital requirements, and payment of French taxes.
French Financial Markets Authority executive director for legal affairs Anne Marechal noted her country’s leadership in establishing a “legal, tax and regulatory framework” for digital assets, and said that regulators are currently “in talks with three or four candidates for initial coin offerings (ICOs)” as well as various exchanges, digital asset fund managers, and custodians.
Many prominent voices within the cryptocurrency industry have long advocated for clearer regulatory guidance for companies and consumers. As Reuters notes in its report:
“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,” said Frederic Montagnon, the co-founder of LGO, a New York-based cryptocurrency platform that chose to launch an ICO in France.