Wallis and Futuna

Okay, here is the comprehensive report on the retail cryptocurrency trading status in Wallis and Futuna, following your specified structure and guidelines.

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**Financial Regulatory Analyst Report: Retail Cryptocurrency Trading Status in Wallis and Futuna**

**Date:** April 12, 2025

**Topic:** Retail_Trading_Status (Cryptocurrencies)

**Jurisdiction:** Wallis and Futuna

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**1. Current Status:** `Allowed-Regulated`

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**2. Detailed Narrative Explanation:**

Wallis and Futuna is an overseas collectivity (collectivité d'outre-mer or COM) of the French Republic. Its unique legal status means that while it possesses some autonomy, key areas such as currency, defense, foreign policy, and significant aspects of law, including financial regulation, remain under the purview of the French state. The currency used is the CFP Franc (XPF), issued by the Institut d'émission d'outre-mer (IEOM), but pegged to the Euro and ultimately falling under French monetary control.

Consequently, the regulatory framework governing cryptocurrencies (referred to as 'actifs numériques' or digital assets in French legislation) in Wallis and Futuna is the one established by France. There are no known specific, distinct cryptocurrency regulations issued by the local territorial assembly or administration of Wallis and Futuna.

France has established a comprehensive regulatory regime for digital assets and Digital Asset Service Providers (DASPs, or Prestataires de Services sur Actifs Numériques - PSANs) primarily through the PACTE Law (Law No. 2019-486 of May 22, 2019, on the Growth and Transformation of Enterprises). This framework does not ban retail trading of cryptocurrencies but seeks to regulate the service providers facilitating such activities.

Key aspects of the French regulatory framework applicable in Wallis and Futuna include:

*   **Permission for Individuals:** Individual citizens and residents are legally permitted to buy, sell, and hold cryptocurrencies.
*   **Regulation of Service Providers (PSANs/DASPs):** Entities providing specific digital asset services in France (and by extension, its territories where French law applies) must comply with regulations overseen by the Autorité des Marchés Financiers (AMF) and the Autorité de Contrôle Prudentiel et de Résolution (ACPR).
    *   **Mandatory Registration:** Services such as crypto-to-fiat exchange and digital asset custody require mandatory registration with the AMF. This involves meeting stringent Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) requirements.
    *   **Optional Licensing:** A more comprehensive optional license is available from the AMF for PSANs seeking a higher level of regulatory endorsement, involving stricter prudential and organizational requirements.
    *   **EU Harmonization (MiCA):** The French framework is evolving to align with the European Union's Markets in Crypto-Assets (MiCA) regulation, which will create a harmonized EU-wide regime. While Wallis and Futuna is not part of the EU customs territory or VAT area, its ties to France mean MiCA's implementation in France will likely impact the regulatory environment indirectly or directly depending on how France applies it to its overseas collectivities.
*   **AML/CFT Obligations:** All registered and licensed PSANs must implement robust Know Your Customer (KYC) and AML/CFT procedures, consistent with French and EU standards.
*   **Investor Warnings:** The AMF frequently issues warnings about the risks associated with cryptocurrency investments and unregistered platforms targeting French residents (including those in overseas territories).

Therefore, retail cryptocurrency trading in Wallis and Futuna is considered `Allowed-Regulated` because it falls under the French legal system, which permits such activities but imposes significant regulatory requirements (registration, AML/CFT) on the service providers involved. Individuals trading crypto are subject to French tax laws regarding capital gains from digital assets.

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**3. Relevant Text Excerpts and Summaries:**

*   **Source:** Legifrance (Official French Law Database) - Code Monétaire et Financier (Monetary and Financial Code), Article L54-10-2
    *   **Summary:** This article, introduced by the PACTE Law, defines Digital Asset Service Providers (PSANs) and lists the services that fall under this definition, including custody, buying/selling digital assets against legal tender, exchanging digital assets for other digital assets, and operating a digital asset trading platform. It forms the basis for regulating these intermediaries.
*   **Source:** Autorité des Marchés Financiers (AMF) - "Becoming a digital asset service provider (DASP)"
    *   **Summary/Paraphrased Concept:** The AMF website clearly outlines that providing certain digital asset services (custody, crypto-fiat exchange) requires mandatory registration. This registration ensures compliance with AML/CFT regulations. Other services can be provided without registration but fall under the optional licensing regime. This demonstrates the regulated nature of crypto service provision under French jurisdiction.
    *   **Direct Quote Concept (Illustrative of AMF's role):** "The PACTE law has created a specific legal framework for digital asset service providers (DASPs). [...] Registration is mandatory for DASPs providing services of digital asset custody and purchase or sale of digital assets in legal tender." (This is a typical statement found on AMF pages explaining the PSAN regime).
*   **Source:** Ministère de l'Outre-mer (French Ministry of Overseas Territories) - General information pages on Wallis and Futuna's status.
    *   **Summary/Paraphrased Concept:** Official French government sources describe Wallis and Futuna as an overseas collectivity where the principle of "legislative identity" largely applies, meaning French laws are applicable unless specified otherwise or where the territory has been granted specific competence. Key areas like finance and currency generally remain under national (French) control. This supports the application of French financial laws, including the PACTE Law regarding digital assets.
*   **Source:** Institut d'émission d'outre-mer (IEOM) - Official Website
    *   **Summary/Paraphrased Concept:** The IEOM website details its role in issuing the CFP Franc for French Pacific collectivities (New Caledonia, French Polynesia, Wallis and Futuna) and overseeing the banking system's stability *in coordination* with the ACPR. It does not claim primary regulatory authority over financial markets or digital assets, deferring implicitly to the national French regulators (AMF/ACPR).

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**4. Source URLs:**

*   **Legifrance (French Monetary and Financial Code - Search for relevant articles like L54-10-1 onwards):**
    *   `https://www.legifrance.gouv.fr/codes/section_lc/LEGITEXT000006072026/LEGISCTA000006179083/` (Navigate within the Code Monétaire et Financier, specifically Book V, Title VI, Chapter X: "Prestataires de services sur actifs numériques")
*   **Autorité des Marchés Financiers (AMF) - PSAN/DASP Information:**
    *   `https://www.amf-france.org/en/professionals/fintech/my-fintech-project-autorite-des-marches-financiers/becoming-digital-asset-service-provider-dasp` (English section explaining DASP regime)
    *   `https://www.amf-france.org/fr/espace-professionnels/fintech/mes-relations-avec-lamf/devenir-un-prestataire-de-services-sur-actifs-numeriques-psan` (French version)
*   **French Ministry of Overseas Territories (General information, may require navigation):**
    *   `https://www.outre-mer.gouv.fr/` (Search within for Wallis and Futuna's specific status and competencies)
*   **Institut d'émission d'outre-mer (IEOM):**
    *   `https://www.ieom.fr/` (General site - specific regulatory statements on crypto are unlikely, but confirms its role vs. national regulators)

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**Disclaimer:** While the French regulatory framework clearly applies, finding official documents *explicitly* stating "Cryptocurrency trading is allowed and regulated in Wallis and Futuna under the French PSAN regime" can be challenging due to the territory's small size and the focus of regulatory communication on France itself. The conclusion is based on the established legal principle of French law application in the collectivity for matters not specifically devolved.