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Franceās financial markets regulator, the AutoritĆ© des marchĆ©s financiers (AMF), has published a report examining trends relating to initial coin offerings. The AMF describes ICOs as a āmarginalā method of financing, estimating that the global ICO industry has raised ā¬19.4 billion ($21.9 billion) since 2014.
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Significant Centralization of Capital
The AMFĀ report notes an āaccelerationā in ICOs over the last two years. ItĀ estimates thatĀ ā¬5.6 billion ($6.3 million) was raised via ICOs in 2017, equating to 1.6 percent of global equity financing for that year. Throughout 2018, the regulator estimates that ICOs have raised ā¬13.4 billion ($15.1 billion) so far, accounting for 69 percent of the total raised by all ICOs since 2014.
The AMF report also points to a significant centralization of capital within the ICO sector. It estimates that just 17 ICOs have raised approximately 40 percent of the total sum generated by the industry thus far.
French ICOs Grab āModest Shareā of Global Sector
The AMF describes French ICOs as āaccounting for a modest share of this new type of financing.ā The report estimates that a total of 15 ICOs have collectively raised ā¬89 million ($100.5 million), meaning that French token sales have represented just 0.46 percent of the total sum raised by the global ICO industry.
While the majority of ICOs have focused on āblockchain or trading applications,ā the AMF believes that projects are now increasingly ādiversifying into other sectors.ā It also notes that āmost of the upcoming ICO projectsā have previously raised financing through ātraditional funding channels.ā In addition, the AMF reports that the majority of ICOs thus far have taken place in the United States.
AMF Advocates International Regulatory Cooperation
The AMF argues that the key āsuccess factors of an ICOā include the need for robust and transparent anti-money laundering procedures. The report also emphasizes the need for āappropriate regulationā to guide the ICO industry. The AMF claims that āgiven the cross-border nature of these projects, the diversity of regulatory approaches at the international level is a point of vigilance.ā It adds that āin this context, international and European cooperation is essentialā in the identification of fraud and the development of coherent regulatory frameworks.
Do you think that ICOs have reached their peak this year? Or is more growth in sight? Share your thoughts in the comments section below!
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