Note: this article was translated from French by an automated tool The young and dynamic (and friendly) team ofAssas Legal Innovationnow publishes on his websiteall kinds of interesting contributions on the topic of law and innovation. For my part, I had the pleasure of answering questions from Baptist Camus(to read my answers on the association's website click here).

Can France miss the turn of blockchain and fintech as it could have missed the turn of the Internet in the mid-1990s, as some observers fear?

The parallel is understandable because there was at the time, on the French side, a minimization of the potential of the Internet, largely linked to the fact that France had been a pioneer in telematics. Let us not forget, however, that having succeeded in equipping millions of homes with minitels almost free of charge in the 1980s was something! And that one of the main representatives, in France, of the “new economy”, Xavier Niel, built his fortune from these famous 3615 services… It is true, however, that the French, absorbed by a minitel, still flourishing in the mid-1990s, were taken aback by the rapid and exponential growth of internet services.

The current circumstances seem a little different to me. However, it is legitimate to want to draw the attention of the authorities to the need to see the development and prosperity in France of a high-performance blockchain ecosystem. The French have the qualities and assets necessary to develop innovative applications and services, to be leaders… but the competition is global and fierce. Not to mention that things are going extremely fast. In this context, French companies with innovative and promising projects must be able to raise the funds they need to develop, in particular from foreign investors. However, ICOs allow them to do this easily and quickly. It is therefore vital that the French authorities are aware of this issue in order to create an environment that allows initiatives to be encouraged and the emergence of competitive French blockchain players. We must find the right balance between investor protection, compliance with tax and anti-money laundering rules and the need to see French companies prosper and succeed.

What do you expect from the expected application decrees to implement the decree of December 2017 on the transmission of securities via blockchain?

There are a great many legal and technical details that will be necessary to implement the ordinance relating to the issue and sale of financial securities of December 8, 2017. Similarly, moreover, for the application of the previous ordinance of April 2016, relating to mini-vouchers. The main point will be to determine whether the issuance and transfer of financial assets can be done on open and decentralized networks or if they will be reserved for networks licensed and managed by one or more people. It seems likely to me that this second possibility will be privileged, at least initially, for simple reasons of security and responsibility. It is, in fact, still difficult to envisage a network without a manager responsible for its proper functioning. Subsequently, it will be necessary to specify the conditions under which it will be possible to gradually move to fully decentralized platforms. In my opinion, there is in particular a reflection to be carried out on the governance of public and decentralized blockchains. Such a reflection should make it possible to determine the characteristics required of these platforms in order to be able to validate the transactions that have taken place there.

What do you think of the options considered by the Autorité des marchés financiers on initial coin offering (ICO), namely to establish a simple guide to good practices, to extend existing legislation or to request legislation and following the best practices ?

It seems to me, from the start, that the blockchain poses specific questions that largely justify the adoption of a regulation and following the best practices. In addition, the existing regulations are very restrictive and poorly suited to the blockchain ecosystem. At the same time, crypto-currency issues must be carried out under conditions that make it safe for investors, respecting at least the imperative of transparency. This is the reason why I am personally in favor of the optional regime which offers guarantees in the event that the issuer chooses to have its operation certified by the AMF, but also allows fundraising without a visa. 'AMF. I think this is a good compromise.

One remark, however: the adoption of legislation on ICOs cannot go without a clarification of their tax regime. To date, there are a lot of uncertainties about the taxation of ICOs. Especially the tax rates are likely to discourage companies from carrying out their fundraising in France ... There is, again, a reflection to be carried out in this field.

How far can this revolution go? Can we imagine tomorrow that financing via ICO or proving ownership via blockchain will be commonplace?

It is likely that the blockchain applications that are expected to become widespread the most quickly fall under the registry function, which does not pose insurmountable difficulties. For example, testing the blockchain for civil status registers was recently discussed in Parliament. Likewise, some higher education institutions have made a habit of recording the degrees they issue on the blockchain. Regarding property titles, it seems to me very likely that the use of blockchain will be necessary sooner or later, including in real estate, even if it is necessary to take into account the existence of centralized storage tools. already existing, efficient and satisfactory. Things will be done in their time.

Likewise, blockchain applications in the logistics or distribution sector (traceability for example) are set to develop. There are also a lot of innovative and very advanced projects in the fintech sector. Moreover, at a time when Telegram is in the process of carrying out a pharaonic ICO which is very successful, the hypothesis of the emergence of a tokeneconomy is not purely theoretical: it is likely that we will see more and more traditional and already established players embarking on the adventure. It is not impossible, for example, that Amazon will decide tomorrow to create its own token ...

However, it is important to be aware of the fundamental issues involved in the emergence and development of crypto-currencies and crypto-assets, regardless of the risks that are frequently and rightly pointed out. These issues are economic and monetary, but also political and even geopolitical. It is not for nothing that States are now embarking on the creation of their own cryptocurrency. Not for nothing, either, that we see reactivated the idea according to which the currency should not come under the sole state monopoly ... These are questions so fundamental that they will and must provoke debate. And that it is difficult to predict what may happen in this field.

Utopian socialists such as Fourier dreamed of self-sufficient communities, freely administered by members with a common confidence. Blockchain and DAOs (decentralized autonomous organization) could they revitalize this dream?

You yourself use the term "dream" ... It must surely be borne in mind that it did not take three weeks for the first DAO to be the subject of embezzlement. Perhaps, however, we will see in the future protocols that are robust enough to see fully decentralized platforms functioning satisfactorily. But here again (I repeat), governance issues are major. On the Bitcoin blockchain as on Ethereum, these governance issues have not yet been resolved in a perfectly transparent or satisfactory manner.

Can blockchain and more generally this new paradigm of decentralization really endanger GAFAMs, symbols of Internet centralization?

It is true that many were ironic, and rightly so, when Mark Zuckerberg, at the time of his vows, highlighted his interest in blockchain and decentralized networks. Facebook seems, from this point of view, a real anti-model! That being said, it seems to me that, if there are threats, they do not concern these companies to the same degree. We will always need to equip ourselves with high-performance and interoperable machines from a Microsoft or an Apple. Likewise, it is so easy to be able to get supplies from a distribution giant like Amazon, where you can find everything under the same conditions. It is undoubtedly more difficult to determine what could happen for Google or Facebook but… it is quite likely that they will react and adapt. And it is not impossible that the GAFAMs use their current dominant position to impose their protocol or even… their cryptocurrency. The risk undoubtedly exists. My impression is that, in the immediate future, decentralized networks will develop with applications and use cases of their own, on the fringes of the large centralized players. For the rest, it is difficult, again, to predict what could well happen. It is in any case an extremely interesting period!   

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