In the era of digital currencies, countries around the globe have a few options. They can choose to completely prohibit crypto or watch from a distance or expand their laws to accommodate them. But France has incorporated a twist to the third option before it can allow ICO affiliated firms to operate in the country.
The twist? It will only allow ICO affiliated firms to do business in the country only if they agree to be regulated.
“If coin issuers sign up to regulation, the French argue they will be seen as more trustworthy by investors, helping the currency gain credibility in the long run. France will even offer certification if the issuer wants,” reported Reuters.
One thing the firms need to consent to is the taxation of profits made. Fabrice Heuvrard, an auditor helping draft ICO rules in the country, argues that the payment of taxes is not an issue given that the taxes ‘are not confiscatory.’
France is developing a regulatory framework that will need cryptocurrency firms to disclose and let the authorities verify those issuing new coins. The firms will also be required to have a clear plan of how to make refunds in case the project never comes to fruition.
Paul Allard, the CEO of a firm targeting to raise 400K euros by conducting an ICO in France, notes that he is ready “to declare the money raised as revenue and pay taxes on the profits… since we are not close to making any profits, it doesn’t really affect us.”
The new rules are set to be released by early 2019 as the French government seeks to flush out cryptocurrency investors, traders, and firms ‘out from the shadows.’
Paris is also looking to grow its tax revenue, provide investor protection, and be part of the rapidly expanding virtual currency market.
Do you think the move by France to allow ICOs, although with a twist, will attract crypto firms into the country?
Let us know your thoughts in the comments section below.
