Autorité des Marchés Financiers (AMF), the Financial Regulator of France, is reportedly ready to give business licenses to the first cryptocurrency companies following the new rules for digital assets.
According to the media reports, the new rules for cryptocurrency exchanges are expected to come into force in late July, while crypto companies can take measures to comply with the standards of capital requirements and consumer protection and pay tax in France getting regulator's approval as a reward.
The new financial bill, approved by the French Parliament in April 2019, also included regulation of some sectors of the crypto industry. However, Francois Villeroy de Galhau, manager of the Bank of France, said this May that stablecoins appeared to be more promising than bitcoins.
After Facebook announced its stablecoin Libra this summer, Francois Villeroy de Galhau announced plans to form a new special crypto task force under the G7 to study regulatory issues.
Anne Marechal, executive director of legal affairs at the Financial Markets Authority, believes that France can become a pioneer in developing the legal, tax and regulatory framework for the cryptocurrency industry. In particular, the government deals with three or four ICO candidates and several crypto-counterparts in France, including custodian providers and fund managers already now.
Notably, cryptocurrency obeys ambiguous rules throughout the world and remains largely unregulated.
For now, four startups are negotiating with French regulators to launch the ICO with their tokens. At the same time, some trading platforms are ready to open their offices in the country.