The blockchain intermediary, ARK, has announced it will be setting up shop in France — now officially incorporated in the country as a cooperative society. The team behind ARK believes the governing structure of the cooperative will match the open source nature of its blockchain organization.

The project claims that the blockchain cooperative will be the first of its kind in the cryptosphere and will be a leading pioneer in the community as one of the first blockchain projects to incorporate in the European Union.

SCIC is the French acronym for “General Interest Cooperatives,” defined under French law as a unique legal entity designed for multi-stakeholder co-operatives whose purpose is the “production and provision of goods and services that are a matter of social utility.”

It is a new private, common interest co-operative that allows anyone  to contribute to the legal framework and governance of an entity.

All SCIC members are shareholders and will belong to of one of the statutory categories: Founders, Advisers, or Employees. Additionally, every shareholder gets exactly 1 vote under the SCIC framework.

How ARK Made Its Decision to Incorporate in France

ARK made the decision to incorporate in France after it had first tried to do the same in Switzerland via the Swiss Foundation. Although the Swiss Foundation is a popular avenue for blockchain projects setting up legal entities, ARK ultimately turned to France’s SCIC framework.

Leveraging the SCIC incorporation process available in France, the team was able accomplish almost everything they wanted in terms of incorporation.

Its unique incorporation style will allow it to structure its governance based on an executive board of directors, while simultaneously giving every member of the community a say in decision making.

Through its SCIC status, the ARK board of directors — except for founders and employees — can name additional shareholders. These new shareholders can also be appointed to the supervisory board, as provided for in the charter. The charter may be amended as often as necessary.

SCIC’s are required by French law to keep at least 52.5% of its profits as legal reserves — however, in Ark’s case, no amount of their produced profits will be distributed to shareholders. Instead, it will keep all profits in reserve for development, marketing, and day-to-day operations.

Looking Ahead Towards the Future of ARK’s SCIC

The team believes ARK’s SCIC will bolster the reputation and credibility of cryptocurrency in the eyes of the French people, the European Union, and possibly even the rest of the world.

During the incorporation process, ARK was invited by the Autorité des Marchés Financiers (AMF) — the French regulatory body for financial markets— and the Banque de France (National Bank of France) to present the ARK Project and explain the conditions of the ARK TEC.  They mostly discussed how to best comply with French laws, providing a transparent relationship with the country’s government.

The post ARK Creates a Unique Business Entity in France appeared first on CoinSpeaker.