Dematerialisation of Unlisted Financial Investment Registration: The Advent of Blockchain Technology
The 8 December 2017 ruling 2017-1674 enables the registration and transfer of specific unlisted financial securities using a distributed ledger technology system. This new way of dealing with security transfer uses blockchain technology, a dematerialised database.
The electronic registration into the distributed ledger system will have the same effects as a physical registration, but without the need for holding a registry.
The entry into force of this ruling is subject to the issuance of a decree, to be published 1 July 2018 at the latest, specifying the type of blockchain admitted (open or closed to the public), the distributed ledger system’s guarantees (mainly regarding authentication) as well as the terms for pledging securities.
Even if the company is always the one deciding to register securities using this technology, it’s important to pay close attention to the company’s statutory provisions. If the latter include that the securities be registered in an account, statutory modifications will be required.
- Buying and Selling A Vineyard In France - July 22, 2019
- Setting Up Business in France – TV and Media - June 19, 2019
- Setting Up Business in France – Franchising - June 19, 2019
- Setting Up Business in France – The Action Plan For Business Growth and Transformation Bill - May 17, 2019
- Setting Up Business in France – Foreign Tax Credit - May 17, 2019
- PACTE law - April 23, 2019
- French Disclosure: the key differences in civil trial evidence gathering The civil trial and interlocutory measures - April 14, 2019
- The French law regarding forced execution of a unilateral promise in contracts - March 18, 2019
- Happy new year 2019 - December 29, 2018
- Posting of foreign employees in France : main legal requirements - October 23, 2018