AMF warns against Cash Flash ICO
France’s financial regulator The AMF has issued a warning to the public about the initial coin offering (ICO) of an entity called Cash Flash.
The AMF said that it calls upon investors to be vigilant regarding an initial coin offering (ICO) by the entity Cash Flash, which is not authorised for marketing in France as it has not been approved by the AMF.
The AMF stated that Cash Flash has published a white paper on its website at cashflash.io/?lang=fr, containing information suggesting that it has obtained the AMF approval, as defined by Article L. 552-4 of the Monetary and Financial Code.
The AMF states that no approval has been issued for the ICO conducted by Cash Flash, nor for any other ICO conducted by this company. This ICO therefore does not provide the legal guarantees associated with the AMF’s approval and cannot, by the terms of Article L. 341-10 6° of the Monetary and Financial Code, be marketed directly to the public in France.
Under the terms of Article L. 552-1 of the Monetary and Financial Code, an issuer making an initial coin offering may apply to the AMF for an approval.
The guarantees associated with the AMF’s approval are set out on the AMF website.
The approval indicates that the AMF has ensured that an ICO’s white paper is complete and understandable to investors.
The AMF points out that investment in an ICO entails risks of a partial or complete loss of the capital invested. No guarantee is provided concerning the liquidity of the tokens during the offer, the actual existence of a secondary market for trading these tokens, or even their value in a particular currency (euro, dollar, etc.).