Crypto Regulation in France: 2026 Update

Crypto regulation in France is among the most developed in the European Union, built on a national licensing framework that predates the bloc-wide Markets in Crypto-Assets Regulation (MiCA) and now operates alongside it. France';s Autorité des marchés financiers (AMF) is the primary regulator, overseeing registration, authorisation and ongoing compliance for crypto-asset service providers. Businesses operating in France - whether locally incorporated or passporting from another EU member state - face a layered set of obligations under French law, EU regulation and anti-money laundering rules. This guide covers the current regulatory structure, licensing requirements, MiCA';s practical impact, compliance obligations, and the key risks that foreign founders frequently underestimate.

France established its foundational crypto rules through the PACTE Law (Loi PACTE), enacted in recent years, which introduced the concept of digital asset service providers (Prestataires de Services sur Actifs Numériques, or PSANs) into French law. The PSAN regime is codified in the French Monetary and Financial Code (Code monétaire et financier), specifically in Articles L. 54-10-1 through L. 54-10-5. This framework was deliberately designed to be technology-neutral and to accommodate a broad range of crypto-asset activities.

Under the PSAN framework, the AMF distinguishes between two tiers of engagement. The first tier is mandatory registration, which applies to any entity providing custody of digital assets on behalf of third parties, or operating a platform for the purchase or sale of digital assets against legal tender. The second tier is optional authorisation, which covers a wider set of activities including exchange between digital assets, portfolio management, and the operation of a trading platform. Authorised PSANs are subject to more rigorous requirements but benefit from a stronger reputational signal in the market.

The Autorité de contrôle prudentiel et de résolution (ACPR), France';s banking and insurance supervisor, also plays a role. It oversees anti-money laundering and counter-terrorist financing (AML/CFT) compliance for registered PSANs, working in parallel with the AMF. Entities that fail to register before providing regulated services face criminal liability, including fines and potential imprisonment of the responsible managers.

The EU';s Markets in Crypto-Assets Regulation (MiCA) entered into force progressively and is now fully applicable across all EU member states, including France. MiCA creates a harmonised licensing regime for crypto-asset service providers (CASPs) at the EU level, replacing or supplementing national frameworks over time. For France, MiCA';s arrival means that the PSAN regime is being progressively superseded, though the transition is managed carefully to avoid regulatory gaps.

Under MiCA, entities that hold a CASP licence issued by the AMF under the new framework can passport their services across all EU member states without needing separate national authorisations. This is a significant commercial advantage for France-based operators. The AMF has been designated as the national competent authority for MiCA purposes, meaning it issues CASP licences, conducts supervisory reviews and handles enforcement.

MiCA also introduces specific rules for issuers of asset-referenced tokens (ARTs) and e-money tokens (EMTs), which are subject to stricter capital, reserve and governance requirements than other crypto-asset categories. Issuers of significant ARTs or EMTs face additional oversight from the European Banking Authority (EBA). For most operators running exchange, brokerage or custody services, the standard CASP authorisation pathway under MiCA is the relevant route.

A non-obvious requirement is that entities already registered as PSANs under the old French framework must transition to MiCA-compliant CASP status within the transitional period set by the regulation. The AMF has published guidance on this transition, and firms that delay risk losing the right to operate while their applications are processed. In practice, founders should consider beginning the MiCA authorisation process well before the transitional deadline expires.

Obtaining a CASP licence from the AMF under MiCA involves a structured application process with defined documentation requirements. The AMF reviews applications against criteria covering governance, capital adequacy, AML/CFT systems, IT security, and the fitness and propriety of key personnel. The process typically takes several months from submission of a complete application, though complex cases or incomplete filings can extend this timeline considerably.

The core requirements for a CASP licence in France include the following:

• A legal entity incorporated in France or another EU member state, with a registered office and genuine operational substance in the EU.
• Minimum own funds, which vary by the category of services provided - custody-only operators face lower thresholds than full-service exchanges.
• A documented AML/CFT programme compliant with the EU';s Anti-Money Laundering Directives and French implementing legislation.
• Robust IT and cybersecurity policies, including segregation of client assets and business continuity arrangements.
• Fit-and-proper assessments for directors, senior managers and qualifying shareholders.

A common mistake made by foreign founders is underestimating the substance requirement. The AMF expects the applicant to have genuine decision-making capacity in France or the EU - a letterbox entity with no local staff or management will not satisfy the regulator. Many applicants also submit incomplete governance documentation, which triggers requests for additional information and delays the clock.

Professional fees for preparing and submitting a CASP application in France typically start from the low tens of thousands of euros for straightforward cases, rising significantly for complex multi-service operators. State fees payable to the AMF are set by regulation and vary by application type. Ongoing compliance costs - including annual audits, AML officer salaries and IT security reviews - represent a material recurring expense that operators should budget for from the outset.

If your business is assessing whether to seek authorisation in France or another EU member state, the choice of jurisdiction matters for passporting strategy, supervisory culture and operational costs. We can help structure the setup correctly the first time. Contact info@vlolawfirm.com for a preliminary assessment.

France has implemented the EU';s successive Anti-Money Laundering Directives through national legislation, and crypto-asset service providers are explicitly included in the scope of obliged entities under the French Monetary and Financial Code. This means PSANs and CASPs operating in France must apply the full suite of AML/CFT measures applicable to financial institutions.

The practical obligations include customer due diligence (CDD) at onboarding, enhanced due diligence (EDD) for higher-risk customers and transactions, ongoing transaction monitoring, suspicious activity reporting to TRACFIN (France';s financial intelligence unit), and record-keeping for a minimum period set by law. TRACFIN is an active and well-resourced unit; French crypto operators report a higher volume of suspicious transaction reports than operators in many other EU jurisdictions, reflecting both regulatory expectations and TRACFIN';s engagement with the sector.

The Travel Rule - derived from the Financial Action Task Force (FATF) recommendations and implemented in EU law - requires crypto-asset service providers to collect and transmit originator and beneficiary information for transfers above a defined threshold. France applies this rule strictly, and the AMF and ACPR have both issued guidance clarifying expectations for unhosted wallet transfers. A common mistake is treating the Travel Rule as a back-office compliance matter rather than a product design issue; operators need to build compliant data flows into their platform architecture from the start.

Penalties for AML/CFT failures in France can be severe. The ACPR has the power to impose administrative sanctions, including fines running into the millions of euros and withdrawal of authorisation. Criminal liability for managers is also possible in cases of serious or deliberate non-compliance. Reputational damage from a public enforcement action can be equally damaging for a crypto business dependent on user trust.

French tax law treats crypto-asset gains realised by individuals as capital gains subject to a flat tax rate under the prélèvement forfaitaire unique (PFU), commonly known as the "flat tax." This applies to gains from the sale of digital assets against fiat currency. Swaps between crypto assets are generally not taxable events for individuals, though the rules have been refined through successive finance laws and administrative guidance from the Direction générale des finances publiques (DGFiP).

For corporate entities, crypto-asset gains are taxed as ordinary business income under standard corporate income tax rules. French companies holding crypto assets on their balance sheet must mark them to market at year-end under French accounting standards, which can create taxable income even without a disposal event. This is a nuance that many foreign founders setting up a French holding or operating company for crypto activities overlook.

Mining and staking income is treated as non-commercial income (bénéfices non commerciaux, or BNC) for individuals, subject to progressive income tax rates. For companies, such income is included in taxable profit. The DGFiP has issued administrative guidance on the classification of various crypto activities, though some areas - particularly DeFi-related income - remain subject to interpretive uncertainty.

Value-added tax (VAT) treatment follows the EU framework established by the Court of Justice of the European Union: exchange of crypto assets for fiat currency is exempt from VAT, while services ancillary to crypto transactions may be taxable depending on their nature. French businesses should obtain specific tax advice before structuring their fee models, as the VAT treatment of custody fees, advisory fees and platform commissions is not always straightforward.

Scenario one: a fintech startup launching a crypto exchange in France. A company incorporated in France wishes to operate a platform allowing users to buy and sell Bitcoin and Ethereum against euros. Under current rules, this activity requires CASP authorisation from the AMF. The company must demonstrate adequate own funds, a compliant AML/CFT programme, fit-and-proper management and robust IT infrastructure. The authorisation process will take several months from submission of a complete application. Once authorised, the company can passport its services to other EU member states without separate national licences. The main practical risk is underestimating the time and cost of preparing a complete application, which delays the ability to generate revenue.

Scenario two: a non-EU crypto business seeking to serve French customers. A company incorporated outside the EU wishes to offer crypto custody and trading services to retail customers in France. Under MiCA, providing regulated crypto-asset services to EU customers without a CASP licence issued by an EU competent authority is prohibited. The company must either establish an EU subsidiary and obtain authorisation, or rely on reverse solicitation - a narrow exception that applies only where the customer initiates the service relationship without any marketing or solicitation by the provider. The reverse solicitation exception is interpreted strictly by the AMF, and relying on it as a primary market access strategy carries significant regulatory risk.

For businesses navigating either of these scenarios, early legal advice can prevent costly missteps. Contact info@vlolawfirm.com to discuss your specific situation with our team.

What is the difference between PSAN registration and CASP authorisation in France?

PSAN registration was the original French national regime introduced by the PACTE Law, requiring entities providing certain crypto services to register with the AMF before operating. CASP authorisation is the new EU-wide licence introduced by MiCA, which the AMF now issues as France';s national competent authority. CASP authorisation involves more rigorous requirements than basic PSAN registration but grants the right to passport services across the entire EU. Entities previously registered as PSANs must transition to CASP status within the applicable transitional period. Failing to complete this transition in time risks losing the right to continue operating legally in France and the EU.

How long does it take and how much does it cost to obtain a crypto licence in France?

The AMF';s review of a CASP application typically takes several months from the date a complete application is submitted. Incomplete applications trigger requests for additional information, which can extend the process significantly. Professional fees for preparing the application - covering legal, compliance and technical documentation - generally start from the low tens of thousands of euros for straightforward single-service operators and rise substantially for complex multi-service businesses. State fees payable to the AMF are set by regulation. Ongoing compliance costs, including AML officer remuneration, annual audits and IT security reviews, represent a recurring budget item that operators should plan for before launch.

Can a foreign company serve French crypto customers without a French or EU licence?

Under MiCA, providing regulated crypto-asset services to customers located in the EU without a valid CASP licence is prohibited, regardless of where the provider is incorporated. The only exception is reverse solicitation, which applies where a customer approaches the provider on their own initiative without any prior marketing or solicitation. The AMF interprets this exception narrowly: any advertising, referral programme or targeted outreach directed at French or EU customers will disqualify the provider from relying on it. Foreign operators wishing to serve the French market in a sustainable and compliant manner should establish an EU entity and seek CASP authorisation.

France offers a well-defined and increasingly harmonised regulatory environment for crypto-asset businesses, anchored by the AMF';s active supervisory role and the EU-wide MiCA framework. The transition from the national PSAN regime to MiCA-compliant CASP authorisation is the defining compliance task for operators currently active in the French market. New entrants must plan for a multi-month authorisation process, meaningful upfront and ongoing compliance costs, and strict AML/CFT obligations enforced by both the AMF and ACPR.

VLO Law Firms advises international clients on crypto regulation in France. We can assist with CASP licence applications, PSAN-to-MiCA transition planning, AML/CFT programme design, and corporate structuring for crypto businesses entering the French and EU markets. To request a consultation, contact: info@vlolawfirm.com