Governments and regulators around the world are making moves to implement official regulations for cryptocurrencies. The crypto industry has set itself as a growing and important sector in the world and it is gaining the recognition it deserves.
France has made a move to allow Initial Coin Offerings (ICO) operations and businesses in the crypto industries to gain formal permission to operate from the government. The new rules set by France’s government were reported on the 16th of July and they are expected to take effect later this month.
Through the new rules, crypto related businesses will be able to get permission to operate from the regulatory body if they submit themselves to national standards that govern capital requirements, taxation and consumer protection.
France was described by Anne Marechal, the executive director for legal affairs at the Financial Markets Authority (AMF), as a precursor that will have legal, tax and regulatory frameworks for the crypto industry. Marechal also added that the AMF has plans to engage crypto exchange platforms, custodians and fund managers. If the negotiations are successful, the entire online cryptocurrency trading landscape in France could be transformed.
Crypto Industry Moving With Significant Momentum
The drive towards gaining legal clarity on cryptocurrency and achieve the necessary regulations has gained momentum over recent weeks. The recent conversations have been spurred by news of Facebook’s project Libra. The project involves a number of big companies and the size of it has raised a lot of questions about cryptocurrency regulation.
G7 countries are also engaging in crypto related conversations among themselves. G7 finance ministers had a meeting on the 17th of July in which US Treasury Secretary Steve Mnuchin and France’s Bruno Le Maire are expected to have found common ground regarding their positions on cryptocurrency.
The Roller Coaster Of Crypto Regulation
The crypto industry is going through a roller coaster of news when it comes to regulatory measures in different countries. While in France positive news has emerged, the case is different in the United States.
Secretary Mnuchin and President Donald Trump both expressed negative sentiments about cryptocurrencies in the past week. The opinions expressed by the American government’s representatives are that cryptocurrencies are a method used for financial crime and thus, the industry should not be allowed to go mainstream.
Players in the crypto industries are keen to see regulations applied to the industry so they can be able to execute their business without restriction. Frederic Montagnon, the co-founder Of LGO, said that operating without regulations is hard for any business and that to have an adverse regulatory framework developed later puts the business in jeopardy.