The French Financial Markets Authority (AMF) has proposed launching a regulatory sandbox for companies issuing token shares for three years, subject to support from other EU countries.
French financial regulator proposes to launch a Digital Lab for three years. Sandbox participating companies will be exempted from complying with specific financial rules of MiFID and CSDR, which, according to AMF, are incompatible with the growth of the blockchain industry.
“These rules were designed to regulate centralized market infrastructures,” AMF President Robert Ophèle said.
He explained that “they are not suitable for the decentralized nature of the blockchain” and therefore make most projects unprofitable. But Ophèle argues that Europe cannot just accept the new rules for blockchain and token stocks overnight.
“We are trying to understand which came first – a chicken or an egg. The industry cannot develop within the current framework, but without regulation, its development is also impossible.”
Ophèle said the Digital Lab’s sandbox would provide regulators with both. Authorities will closely monitor how these projects evolve when they are not related to traditional European market regulation. For three years, they will collect feedback and data to formulate new, more flexible rules.
“As a regulatory body, we must understand these changes and ensure that our regulatory framework remains adequate. The new regulation should enable risk management – to effectively protect users –without losing the benefits of innovation,” Ophèle said.
Over the past years, AMF has consistently advocated a visionary approach to blockchain support. In December, the French regulator, for the first time, approved an application for an ICO, and last July, the rules for cryptocurrency companies were published.
It is not yet known how other European regulators will respond to the AMF proposal. The press services of securities regulators in Germany, Italy, Austria, Ireland, and Finland have not yet published their statements, as well as the European Securities and Markets Authority (ESMA).
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Technical analysis of Ethereum (ETH):
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Technical analysis of Ripple (XRP):
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