France poised to approve first batch of crypto companies under new policy this month

France is set to approve the first batch of initial coin offering (ICO) operators and other crypto businesses under its new policy, which is slated to be …

France is set to approve the first batch of initial coin offering (ICO) operators and other crypto businesses under its new policy, which is slated to be implemented later this month.

According to Reuters, the Autorité des Marchés Financiers (AMF) is in talks with “three or four candidates” for potential ICOs as well as several other cryptocurrency exchanges, custodians, and fund managers.

France is a precursor,” Anne Marechal, AMF Executive Director for Legal Affairs, said. “We will have a legal, tax and regulatory framework.

The country’s current laws require exchanges and custodians to register with the AMF and secure a certification from the French watchdog.

Currently, cryptocurrencies are facing global scrutiny after Facebook announced its forthcoming project Libra. Policymakers, financial watchdogs, and even crypto-related companies and industry associations now seek legal clarity for the little-regulated sector.

France also reportedly flexed its position in the Group of 7 economic powers to organize a task force to determine how central banks will regulate cryptocurrencies like Libra.

Just recently, European Central Bank (ECB) executive Benoit Coeure urged financial regulators to “move more quickly” to prepare for the upcoming Libra, describing the development of financial services and asset in a regulator void as “too dangerous.”

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France Expected to Approve First Round of Regulatory Compliant Initial Coin Offerings

France will soon reveal its first round of regulatory-compliant initial coin offerings (ICOs) according to a report. The ICOs come following a months-long …

France will soon reveal its first round of regulatory-compliant initial coin offerings (ICOs) according to a report. The ICOs come following a months-long discussion and conclusion of bespoke legislation to allow for digital assets to be issued and traded which are not deemed to be securities.

In a report by Reuters, Anne Marechal, executive director for legal affairs at the Autorité des Marches Financiers (AMF), stated:

“France is a precursor. We will have a legal, tax and regulatory framework. We are in talks with three or four candidates for initial coin offerings (ICOs).”

The AMF is also said to be working with crypto exchanges, custody providers, and fund managers. The non-security token offerings will be tradable – similar to securities.

The regulatory regime was created with the passage of the Pacte Law (Loi Pacte), legislation that was designed to make France more appealing to crypto-entrepreneurs. The law achieved final approval earlier this year. The legislative push to enable ICOs was advocated by the French Minister of the Economy, Bruno Le Maire. Advocates believe that by creating specific rules for ICOs, France may become a popular jurisdiction for blockchain entrepreneurs.

While some smaller European countries have pursued ICOs, France will be the first large European economy to create new rules that allow the new form of capital formation to be regulated. The regime is unique in the fact that issuers may seek out the approval of the AMF, but approval is not a requirement.

According to the AMF:

“Certain offers to the public of tokens may be endorsed by the Autorité des marchés financiers. This visa is an optional label that an issuing company may or may not solicit. Companies wishing to obtain a visa must, in particular, prepare an information document containing information about the issuer and the offer of tokens. The visa then indicates that the AMF has verified that the information document for this offer is complete and comprehensible for investors.”

Any AMF approved ICO may not conduct an offering of longer than 6 months. The AMF points out that it does not undertake and verification of the computer programs associated with any offer.

While the French ICO “Visa” is optional, only issuers receiving a stamp of approval by the AMF may advertise or solicit to investors.

The AMF will host a “whitelist” of approved ICOs on their website.

There will also be a “blacklist” for issuers who were not approved or for companies that distributed inaccurate information.

The AMF blacklist has been public for some time, tallying a host of non-compliant or illegal offerings, but the whitelist is yet to be populated.

This past spring, Karim Sabba, co-founder of Paris Blockchain Week, told Crowdfund Insider that the passage of PACTE Law establishes clear guidelines for businesses wishing to fundraise via public token offerings, and businesses wishing to conduct an ICO:

“[They] can now be assured that their fundraising is licensed by the French Financial Markets Authority (AMF). By doing so, the PACTE law will help legitimize the quality of these ICOs. Overall, PACTE will positively impact the attractiveness of France as a jurisdiction for digital asset businesses which, in turn, will serve to drive forward the adoption of digital assets amongst consumers.”

It has been reported that France is pushing the European Commission to take a similar path to its bespoke rules for ICOs.

While there has been much discussion in Brussels about creating a harmonized approach to online capital formation in general, the technocrats have struggled to come to an agreement.

Meanwhile, in the UK, the Financial Conduct Authority (FCA) will soon release final guidance as to how it will regulate “cryptoassets.” The FCA is widely acknowledged as creating the gold standard of rules supportive of Fintech innovation. The FCA has already conducted a series of consultations – most recently proposing a ban on crypto-derivatives for retail investors.

While it is fairly well known is that digital assets that are securities will be regulated like other securities. It remains unclear which path the FCA will take for “utility” type tokens.

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Canadian securities regulators publish trading fee rebate pilot study for comment

… exchanges and alternative trading systems, from paying trading fee rebates to dealers for executing orders for a sample set of equity securities.

TORONTO, Dec. 18, 2018 /CNW Telbec/ – The Canadian Securities Administrators (CSA) today published for comment a notice outlining a proposed Trading Fee Rebate Pilot Study to examine the effects of a prohibition of rebate payments by Canadian marketplaces (Proposed Pilot). The predominant trading fee models that have emerged in the Canadian equities market are the “maker-taker” trading fee model and the “inverted maker-taker” fee model. Under both of these models, a marketplace charges a fee to one party of the trade and pays a rebate to the other party.

“The Proposed Pilot would provide valuable information regarding the impact of trading fees and rebates on the behaviour of market participants, and market quality in general,” said Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers.

The Proposed Pilot would temporarily prohibit Canadian marketplaces, including exchanges and alternative trading systems, from paying trading fee rebates to dealers for executing orders for a sample set of equity securities. The sample securities would include both highly liquid and actively traded, medium liquidity securities.

Initially proposed in a 2014 notice, the study would allow the CSA to better understand and address potential issues associated with the payments of rebates. These issues include: conflicts of interest for dealer routing decisions; increased segmentation of order flow; and increased intermediation of actively traded securities.

It is intended that the Proposed Pilot will run concurrently with the United States Securities and Exchange Commission’s (SEC) Proposed Transaction Fee Pilot.

Designed by Katya Malinova, Andreas Park, and Andriy Shkilko, academics selected and previously announced by the CSA, the Proposed Pilot includes preliminary feedback from stakeholders on its design and scope. The CSA is now seeking further input on both the issues raised in the notice and the study’s design.

The full design report for the Proposed Pilot is included at Appendix A of the notice, which is available on the CSA members’ websites. The comment period will close on February 1, 2019.

The CSA, the council of the securities regulators of Canada’s provinces and territories, coordinates and harmonizes regulation for the Canadian capital markets.

For Investor inquiries, please refer to your respective securities regulator. You can contact them here.

For media inquiries, please refer to the list of provincial and territorial representatives below or contact us at media@acvm-csa.ca.

Kristen Rose

Ontario Securities Commission

416-593-2336

Sylvain Théberge

Autorité des marchés financiers

514-940-2176

Brian Kladko

British Columbia Securities Commission

(604) 899-6713

Hilary McMeekin

Alberta Securities Commission

403-592-8186

Jason (Jay) Booth

Manitoba Securities Commission

204-945-1660

David Harrison

Nova Scotia Securities Commission

902-424-8586

Renée Dyer

Office of the Superintendent of Securities,

Newfoundland and Labrador

709-729-4909

Jeff Mason

Nunavut Securities Office

867-975-6587

Shannon McMillan

Financial and Consumer Affairs

Authority of Saskatchewan

306-798-4160

Sara Wilson

Financial and Consumer Services

Commission, New Brunswick

506-643-7045

Steve Dowling

Government of Prince Edward Island,

Superintendent of Securities

902-368-4550

Rhonda Horte

Office of the Yukon Superintendent of

Securities

867-667-5466

Tom Hall

Office of the Superintendent of Securities

Northwest Territories

(867) 767-9305

SOURCE Autorité des marchés financiers

View original content: http://www.newswire.ca/en/releases/archive/December2018/18/c5892.html

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Humania launches new customer-focused insurtech

Humania Assurance has launched a new internal start-up that leverages insurance technologies to “improve customer loyalty.”.
Humania launches new customer-focused insurtech

Humania Assurance has launched a new internal start-up that leverages insurance technologies to “improve customer loyalty.”

Called “Lead2action.ca,” the start-up is fully owned by Humania Assurance and is registered at the Autorité des marchés financiers. It was created to meet the evolving demands of Humania’s partners.

“Many of our business collaborators were looking for a new model of partnership and distribution. We have therefore decided to set up this project by allocating a budget and dedicated resources that we have detached from the operational structure,” explained Humania Assurance president and CEO Stéphane Rochon.

“Lead2action is an agency specialized in insurance technologies. Its objective is to improve customer loyalty. Using programmatic technology, it offers its partners a new automated approach to promote insurance products to their customer networks,” Rochon added.

With the start-up’s integrated approach, any organization can promote one or more insurance products to a target audience – online and automatically – without having to invest in an entire distribution infrastructure. Lead2action.ca accomplishes this by first identifying the best target market for a specific product, and then creating an automated digital marketing campaign using algorithms.

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France’s crypto derivatives rules could be EU template

France’s Autorité des marchés financiers (AMF) announced February 22 that cryptocurrency derivatives should be regulated just like any other financial instrument and therefore online platforms offering these are included under the new Markets in Financial Instruments Directive (Mifid II). As well as …
France’s Autorité des marchés financiers (AMF) announced February 22 that cryptocurrency derivatives should be regulated just like any other financial instrument and therefore online platforms offering these are included under the new Markets in Financial Instruments Directive (Mifid II). As well as …

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