The French regulator Autorité des Marchés Financiers (AMF), has examined the legal obstacles to deploying blockchain for security tokens. It suggests the creation of a European digital lab or sandbox where national regulators can relax legal requirements.
The AMF acknowledges that security tokens are garnering interest from both blockchain ecosystems as well as incumbents. It sees tokenization as a natural step in the automation of post-trade processes.
In the report, the regulator explored two legal aspects. Firstly the issue and sale of tokens and secondly, their inclusion in investment funds. For funds, they didn’t see a major regulatory impediment at either a French or European level, and recommended asset managers should apply to the AMF to update their license.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
