Earlier, France had reduced to the taxes on profits which are generated from cryptocurrency trading. The taxes were reduced by half. This move was widely cheered by the French citizens. In a recent development, France hasnow implemented proper rules and regulations for ICOs. The question which arises is whether France is trying to attract the cryptocurrency and ICO industry by implementing a proper legal framework for cryptocurrencies and ICOs?
New rules for ICOs:
Recently, the finance minister of France, Bruno Le Maire, announced that the law which spells out a proper guideline for the ICOs has been passed by France. With the help of this legal framework, he stated that France will now be able to attract the best talent in the cryptocurrency and blockchain industry. As a result, the employment opportunities will be more in France. Moreover, this will ensure that economic growth in France is fast and as well after the adoption of the newer technology.
According to the legislation, the financial regulator of France will have the power to permit the businesses to launch ICOs. The regulator will look into the guarantees which are provided to the investors. If proper guarantees are provided to the investors, the companies will be able to go ahead and launch the ICOs. Previously, the financial regulator of France has been concerned about the quality of ICOs which are being launched in the race to get the investors for these ICO’s. With such a proper legal framework, it will be able to go by the rules and will be able to approve or deny the companies, the opportunity to launch an ICO.
ICOs are somewhat similar to initial public offerings but the regulatory hurdles in ICOs are pretty limited. Moreover, they are launched in a completely digital ecosystem by showing tokens to the investors rather than issuing certificates. Even though this might induce some bureaucratic hassles into the process but it will ensure that only the legit ICOs are launched. This will protect the investors against losses from fraud ICO as well. As a result, it will become much easier for the investors to invest in ICOs.
At the same point in time, with almost 50% reduction in cryptocurrency taxes, France will surely be able to attract not just the companies which are launching the ICO’s but also the traders who trade in higher volumes as well. This will, in turn, increase the tax revenue for the French government over a longer period of time. France certainly seems to be favoring the blockchain in cryptocurrency industry in order to induce economic growth into its country.