On 26 October 2017, France’s Financial Markets Authority, the “Autorité des Marchés Financiers” (“AMF”), published a discussion paper focusing on initial coin offerings (“ICOs”) that highlights the (many) dangers that arise from these unregulated transactions and discusses the regulation options that it currently foresees.
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France’s Financial Markets Authority Considers Its Options for Regulating Initial Coin Offerings
December 6th, 2017 | Posted by in Blockchain | France | IT | Legislation | Trusted Services and eSignature - (0 Comments)France Moves Forward With Proposed Blockchain For Certain Securities Exchange
October 5th, 2017 | Posted by in Blockchain | France | Legislation | Trusted Services and eSignature - (0 Comments)Further to the adoption of Act no.2016-1691, dated 9 December 2016, on Transparency, Anti-Corruption and Modernization of Economic Life (“Sapin II” – see our compliance coverage here) and the public consultation whose results were made public on 30 August 2017 (see our coverage here), the French Ministry of Finance published a draft document aiming at adapting the French legal framework to the use of blockchain technology.
The proposed draft (which may be accessed here in French) address the possibility, for company, to register in a “shared electronic registry”:
- Negotiable debt securities;
- Units or shares of undertakings for collective investment;
- Capital securities issued by corporations and debt securities other than negotiable debt securities, provided that they are not traded on a trading platform
The conditions under which such registration would possible expressly exclude any item admitted to the operations of a central depository or delivered in a system for the payment and delivery of financial instruments. In addition, the bylaws of the issuer must expressly provide for the possibility to use such shared electronic registries.
In any case, the French regulatory framework would subject to French law whenever the issuer is headquartered in France or the issuance itself is already governed by French law.
Additional technical measures will subsequently be devised by a supplementing Decree, in order to provide the required safeguards.
While assessing the relevancy of a blockchain framework for corporate titles remains difficult in the absence of such technical details, all players are welcome to provide the Ministry with observations on the proposed framework until 9 October 2017.
First published on the K&L Gates Fintech Law Blog with Emilie Oberlis.
France: Securities Over the Blockchain Expected to Get Legal Framework this Fall
September 8th, 2017 | Posted by in Blockchain | France | IT | Legislation - (0 Comments)The French Act no.2016-1691 dated 9 December 2016 on Transparency, Anti-Corruption and Modernization of Economic Life (Or “Sapin II” – see our compliance coverage here) empowered the Government to amend the regulatory framework to facilitate the transmission of certain financial securities through blockchain technology
1)Article 120 of Sapin II “The Government may by way of executive orders within the 12 months following this Act take the measures necessary to (…) … Continue reading
In order to prepare such executive order, the Ministry of Finance initiated last Spring a public consultation, whose results were made public on 30 August 2017.
The 43 contributions included the points of view of local associations, banks, management companies, fintech pure players, academics, law firms and consultants, and provided operational and technical aspects to be taken into consideration in order for the new regulatory framework not to hinder the adoption of blockchain technology, while balancing security and foreseeability for all the players involved.
References
| ↑1 | Article 120 of Sapin II “The Government may by way of executive orders within the 12 months following this Act take the measures necessary to (…) amend the regulatory framework applicable to securities in order to allow the representation and the transmission (via a shared electronic recording device) of securities that are not admitted to the operations of a central depositary or a system of payment and delivery of financial instruments.” |
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Electronic Money: The French Government Strengthens Financial Intermediaries’ Obligations
November 16th, 2016 | Posted by in Blockchain | Competition | eCommerce | France | Legislation | Trusted Services and eSignature - (0 Comments)On November 10, 2016, the French Government issued a decree against the financing of terrorism which contains various measures addressing anonymous electronic money [source in French]. This new regulatory measure applies to electronic money issuers as well as their distributors, credit institutions, finance companies, consumers, and to any person who physically transfers money from a certain amount.
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Legal 500 2016 – EMEA Ranking – Industry focus: IT, telecoms and the internet – Band 3
April 11th, 2016 | Posted by in Blockchain | Communication | Connected Cars | eCommerce | Europe | IT | Privacy | Rankings | Software | Trusted Services and eSignature - (0 Comments)K&L Gates is ranked in the Industry focus: IT, telecoms and the internet ranking as Band 3
“Headed by E. Drouard, K&L Gates LLP’s six-lawyer team assists major companies with digital transformation, outsourcing matters and IT systems integration. It also advises on cutting-edge data protection matters. Altarea-Cogedim Group and Voyages-SNCF.com are clients, as are a number of luxury goods manufacturers and advertising groups. Senior associate Claude-Etienne Armingaud is another name to note.”
Source: Legal 500 EMEA
The French Take On The Blockchain
March 30th, 2016 | Posted by in Blockchain | France | Legislation - (0 Comments)On March 24, the French National Assembly hosted a day-long conference on “Blockchain: Disruption and Opportunities.”
This event aimed at raising awareness of the French elected representatives and corporate executives on blockchain issues and potential uses for the digital transformation of society as a whole.
The closing statement provided by Emmanuel Macron, the French Minister of Economy, Industry and Digital Economy, was subsequently echoed by his announcement on March 29 of the upcoming adaptation of the French finance regulatory framework in order to progressively allow the introduction of the technology.
This adaptation should first open up to experimentation on the mini-bond market, to be expanded to other tools.
Mr. Macron stated that he was “aware of the importance of the disruptive potential of the blockchain” while the regulatory framework was limited by the current French and European regulations, which prevented the use of the blockchain “in real-life situations, i.e. with real clients and not exclusively in closed beta test scenario within a given financial institution.”
It was also announced that a ministerial ordinance had just been submitted for review to the French Administrative Supreme Court (“Conseil d’État”) to allow for such experimentation in the coming weeks.
First published on K&L Gates FinTech Law Blog.
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