China has outrightly banned ICOs and cryptocurrencies, the U.S SEC has preferred to treat ICO tokens as Securities, and the U.K is still unsure about what to do with cryptocurrencies.
But the French government has taken a different stance. Being one of the world’s biggest economies, reports have emerged that France wants to boost its tax revenues by providing a regulatory cover for ICOs.
Instead of showing ICO Projects the exit door or ignoring them, government authorities will create ICO regulation in France on the basis that ICO issuers will pay taxes for money generated from their business.
Is there a better way to grab a share from a booming industry that has the potential to grow even more in the future?
ICO Regulation In France
According to a Reuters report, the French authorities have appointed a new tax force to draft regulations for ICO projects launching in the country. Even though not so much was given away about the content of the draft rules, the basics were revealed.
The tax force will screen the team behind an ICO project and also the scope of what the plan to achieve. Attention will also be given to whether the startup has enough capital to repay investors if the project eventually fails and they will also be asked to comply with AML and KYC rules.
Providing such ICO regulation in France will be beneficial in the long run for everyone. Investors will be fully protected. ICOs that comply with the regulatory standards can be sure that the public will no longer be scared to put money in their project. The French government will also cash in from where other big economies as missing out.
68 ICOs Lurking In France
As per the report, 15 ICOs have been launched so far in France with the projects raising as much as 89 million Euros. In addition to this, 68 ICOs are currently on the sidelines, waiting to launch anytime soon.
With the draft rule for ICO Regulation in France also expected early next year, it could arrive at the perfect time for the country to increase the volume of tax revenue that it currently generates.
Fabrice Heuvrard, an auditor, working with the tax force team summed it perfectly in the report when he confirmed that “the (cryptocurrency) community is ready to pay taxes as long as they are not confiscatory.”
So, the stage will soon be set!
Other countries can continue to slumber but the latest move by France will likely show other governments how it’s done and maybe more regulatory rules will be rolled out in the coming months or definitely years.