Categories: ICO

France’s Autorité Des Marchés Financiers Launches UNICORN, Requests Public Comment On Token Offerings

Click here to view original web page at www.ethnews.com

As token offerings (also called ICOs) have risen to prominence over the last year, regulators around the world have wondered how to approach these disruptive financial mechanisms. On October 26, 2017, Autorité des marchés financiers (AMF) – the stock market regulator in France – announced the Universal Node to ICO Research & Network (UNICORN), an initiative to support and study fundraising based on cryptocurrency and blockchain technology. Concurrently, the AMF solicited public comment on how to regulate token offerings through a consultation paper. Comments can be sent to directiondelacommunication@amf-france.org until December 22, 2017. Actors and companies considering a token offering are also encouraged to contact the AMF via email (fic@amf-france.org).

Token offerings are “intended to finance technological projects at an early stage of their development,” wrote the AMF, noting that “purchasing tokens requires a good understanding of the nature of these projects, the underlying technology and the related risks.” Typically, the function and utility of a token is specific to a project. The rights, voting power, and value of a token can vary dramatically.

According to the AMF, risks presented by token offerings include:

  • Absence of specific regulation;
  • Risks related to the information documents;
  • Risk of loss of capital;
  • Risk of money-laundering and scams;
  • Risks associated with the projects financed.

The regulator is considering three avenues for token offering supervision:

  • Promote best practices without changing existing legislation;
  • Extend the scope of existing texts to treat token offerings as public offerings of securities;
  • Propose ad hoc legislation adapted to token offerings.

According to the AMF, token offerings generally conform to a three-step process: announcement of the offering; publication of the offering (i.e., white paper and explanation of the how the project will use its proceeds); and sale of tokens.

Per the AMF, there is no reliable source to calculate how much money has been raised through token offerings, but from January to September 2017, the equivalent of approximately 1.5 billion euros ($1.8 billion USD) was raised globally. The AMF also remarked on the international nature of projects. “It is possible that certain ICO communities are located in several countries and should therefore ... be considered as multinationals or even stateless entities,” wrote the AMF. To date, at least four token offerings have been undertaken in France.

In its consultation document, the AMF included a series of questions to guide public input. The regulator seeks contributions on white paper standardization, accounting models for token offerings, reporting requirements for projects, and potential licensing requirements among other issues.

The AMF also referenced ongoing discussions by other regulators including the

US Securities and Exchange Commission, United Kingdom’s Financial Conduct Authority, the Financial Services Commission of South Korea, the People’s Bank of China, the Monetary Authority of Singapore, and BaFin in Germany.

Matthew is a writer with a passion for emerging technology. Prior to joining ETHNews, he interned for the U.S. Securities and Exchange Commission as well as the OECD. He graduated cum laude from Georgetown University where he studied international economics. In his spare time, Matthew loves playing basketball and listening to podcasts. He currently lives in Los Angeles. Matthew is a full-time staff writer for ETHNews.

Like what you read? Follow us on Twitter @ETHNews_ to receive the latest France, Autorité Des Marchés Financiers or other Ethereum cryptocurrencies and tokens news.

cinerama

Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Share
Published by
cinerama

Recent Posts

The Entire Bitcoin Dynamic is Changed by the Lightning Network, Says Samson Mow

Samson Mow, BTCC Exchange’s Founder and Magical Crypto Friends and Blockstream’s present CSO, recently shared his views on Bitcoin’s status… Read More

4 hours ago

Bitcoin History Part 15: Silk Road Is Born

Silk Road launched in February 2011 as the darknet’s first bitcoin-based marketplace. Within four months, it would be the darknet’s… Read More

4 hours ago

Sunday Digest: Bitcoin Price, Pantomime Season, More Craig Wright Lies

Share Tweet Send Share This week, US President, Donald J Trump, decided that he would like to buy Greenland, thereby… Read More

4 hours ago

Bitcoin Twitter Is Daydreaming About a Hong Kong Bank Run

Crypto-fever dreamers cheered as Hong Kong protesters suggested organizing a bank run, but apparently rioters didn't flock to bitcoin. |… Read More

4 hours ago

World Bank issues second tranche of Ethereum blockchain kangaroo bond

'Kangaroo bond' is the name given to a foreign bond, issued in the Australian market and denominated in Australian dollars.… Read More

4 hours ago

What the Theft of a BBC Reporter’s $30,000 in Ethereum Shows About Cryptocurrency

Last week, BBC contributor Monty Mumford lost $30,000 of Ethereum . This came after a logical thought process: invest in… Read More

4 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More