France attempts to use the blockchain revolution to kickstart a new entrepreneurial national ethos, with the passage of Article 26.
The French government has adopted Article 26 of the Business Growth and Transformation Bill (PACTE), enshrining one of the world’s most progressive Initial Coin Offerings (ICO) frameworks into law.
The act is the latest component in French President, Emmanuel Macron’s push to encourage entrepreneurship and get rid of the archaic bureaucratic inefficiencies that have for so long hindered start-ups in France.
The introduction to the act says:
“The Plan d’Action pour la Croissance et la Transformation des Entreprises (PACTE – Action Plan for Business Growth and Transformation) is a new step in France’s economic transformation. Its aim is clear: liberated companies that are better funded, more innovative and fairer.”
Article 26 will create a controlled and regulated system through which businesses can issue tokens to raise capital, putting France in the vanguard of progressive nations embracing the benefits of blockchain technology.
Paralleling parts of recent legislation passed in nations like Malta and Liechtenstein, the French financial regulator, the Autorité des Marchés Financiers (AMF), will be responsible for reviewing and analysing all documents and white papers related to ICOs – in an effort to stamp out the scams and frauds that have become such a problem.
Only after a planned ICO has passed all the tests and being granted a license will it be allowed to proceed, with the government hoping that such a stringent and clear system will have a strong appeal for legitimate investors.
Though undoubtedly, Article 26 is a significant step in the right direction, it remains to be seen whether France – a country notorious for its political and economic tendency towards bureaucratic paralysis and militant unionism – can really find a place in the front ranks of an increasingly decentralised and dynamic blockchain-based globalised economy.
(Photo: © CarolRobert | Dreamstime.com)