Réunion

**Report: Retail Cryptocurrency Trading Status in Réunion**

**Date:** April 12, 2025

**Jurisdiction:** Réunion (Overseas Department and Region of France)

**Topic: Retail_Trading_Status**
*Description: Assess whether individual citizens and residents in the country are legally permitted to buy, sell, and hold cryptocurrencies. Detail the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued).*

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

**2. Detailed Narrative Explanation:**

As an overseas department and region of France, Réunion operates under the legal and regulatory framework of the French Republic and, by extension, the European Union. Therefore, the status of retail cryptocurrency trading in Réunion mirrors that of mainland France.

Individual citizens and residents in Réunion are legally permitted to buy, sell, and hold cryptocurrencies. This activity is not banned or restricted at the individual level. However, the environment is regulated, primarily focusing on the service providers facilitating these transactions.

*   **French National Framework (PACTE Law):** France established a pioneering regulatory framework for digital assets with the PACTE Law (Plan d'Action pour la Croissance et la Transformation des Entreprises), enacted in May 2019. This law introduced the status of Digital Asset Service Providers (DASPs), known in French as *Prestataires de Services sur Actifs Numériques* (PSANs).
    *   DASPs offering specific services, namely (1) custody of digital assets for third parties and (2) buying/selling digital assets against legal tender (fiat currency), are required to register with the French Financial Markets Authority (*Autorité des marchés financiers* - AMF). Registration involves demonstrating compliance with Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) regulations, including robust Know Your Customer (KYC) procedures, and ensuring the fitness and propriety of senior management. The French Prudential Supervision and Resolution Authority (*Autorité de contrôle prudentiel et de résolution* - ACPR) provides assent regarding AML/CFT compliance for these registrations.
    *   Other DASP services, such as exchanging digital assets for other digital assets or operating a trading platform, initially required registration later, but the landscape is shifting with MiCA (see below).
    *   The PACTE law also created an *optional*, more stringent DASP license granted by the AMF, requiring compliance with additional organizational, financial, and conduct rules. While few obtained this license, it signaled a move towards comprehensive regulation.

*   **EU Framework (MiCA Regulation):** The European Union's Markets in Crypto-Assets (MiCA) Regulation (Regulation (EU) 2023/1114) entered into force in June 2023 and its provisions are becoming applicable in phases, with full application for Crypto-Asset Service Providers (CASPs - the EU term replacing DASPs/PSANs) expected from December 30, 2024. MiCA creates a harmonized regulatory framework across all EU member states, including France and thus Réunion.
    *   MiCA replaces national regimes like the French PACTE framework, although France has opted for a transitional period allowing existing registered/licensed DASPs to continue operating nationally until July 1, 2026, while they apply for the mandatory MiCA CASP authorization.
    *   Under MiCA, providing crypto-asset services (including custody, exchange, operating trading platforms, providing advice, etc.) requires mandatory authorization as a CASP from the national competent authority (the AMF in France). This authorization involves meeting strict requirements regarding governance, capital, investor protection, market abuse prevention, and AML/CFT compliance.
    *   MiCA authorization grants a "European passport," allowing CASPs authorized in one member state (like France) to offer services across the entire EU.

*   **KYC/AML Requirements:** Robust KYC/AML procedures are mandatory for registered/authorized crypto service providers operating in France (and Réunion) under both the PACTE law and the incoming MiCA regulation, aligned with EU AML Directives (like AMLD5 and the upcoming AML package) and FATF recommendations. This includes customer identification and verification, transaction monitoring, and reporting suspicious activities to the French financial intelligence unit (Tracfin). France has also implemented the FATF's "Travel Rule" for crypto transactions, requiring the collection and exchange of originator and beneficiary information.

*   **Investor Protection and Warnings:** French regulators (AMF and ACPR) actively monitor the crypto market and issue warnings to the public regarding the risks associated with crypto-asset investments, such as high volatility, scams, and the importance of using authorized service providers. They maintain blacklists of unauthorized platforms targeting French residents.

In summary, individuals in Réunion can freely engage in cryptocurrency trading, but the platforms and intermediaries they use are subject to a comprehensive and evolving regulatory framework designed to ensure market integrity, financial stability, and investor protection through mandatory registration/authorization, strict KYC/AML compliance, and regulatory oversight.

**3. Specific Relevant Text Excerpts/Summaries:**

*   **Legality for Individuals:** "Yes. French residents are legally permitted to own, buy, and sell virtual assets. The regulatory framework ensures that cryptocurrency activities are conducted within a legal and secure environment." (Source: Notabene, summarizing French law)
*   **PACTE Law Framework:** "Promulgated on 22 May 2019, French legislation for markets in digital assets (the “PACTE law”) establishes an innovative regulatory framework for some crypto-assets industry actors and their supervision by French financial regulators, the Financial Markets Authority (Autorité des marchés financiers – AMF) and Prudential Supervision and Resolution Authority (Autorité de contrôle prudentiel et de résolution – ACPR)." (Source: Adan - Association for the Development of Digital Assets)
*   **Mandatory DASP Registration:** Under the PACTE Act, "a DASP is required to register with the Financial Markets Authority (Autorité des Marchés Financiers, or “AMF”) when it provides at least one of the following four services: (1) custody of digital assets on behalf of third parties; (2) buying or selling digital assets in legal currency; (3) exchanging of digital assets for other digital assets; and (4) operation of a digital asset trading platform." (Source: Global Legal Insights, noting initial requirements focused on 1 & 2, later extended). *Note: MiCA now mandates authorization for a broader list of services.*
*   **KYC/AML Requirements:** "The PACTE Law requires DASPs to register with the Autorité des Marchés Financiers (AMF) and comply with AML and CTF obligations. This includes customer due diligence, transaction monitoring, and reporting suspicious activities to the relevant authorities." (Source: Notabene)
*   **MiCA Implementation:** "Regulation (EU) 2023/1114 of 31 May 2023, known as the MiCA Regulation, which establishes the legal framework for crypto-asset services [...] will come into effect on December 30, 2024. [...] The new CASP regulatory status will be mandatory for all entities wishing to provide at least one of the ten crypto-asset services outlined by the MiCA Regulation within the European Union (“EU”)." (Source: Deloitte Société d'Avocats)
*   **MiCA Replacing National Frameworks:** MiCA "replaces the national frameworks established by some EU Member States [...] For instance, the French framework introduced by the PACTE Law [...] will be phased out." (Source: AMF France)
*   **Transitional Period:** "France [...] intend[s] to implement the full 18-month Transition Period until 1 July 2026" allowing existing DASPs time to comply with MiCA. (Source: Aosphere)
*   **Regulatory Warnings:** "The AMF and the ACPR warn the public against the activities of several entities offering in France investments in Forex and in crypto-assets derivatives without being authorized to do so." (Source: AMF France / ACPR Press Release example)

**4. Direct URL Links to Sources:**

*   **AMF (French Financial Markets Authority) - MiCA Overview:** [https://www.amf-france.org/en/regulation/policy/doctrine-and-consultations/european-regulation-markets-crypto-assets-mica](https://www.amf-france.org/en/regulation/policy/doctrine-and-consultations/european-regulation-markets-crypto-assets-mica)
*   **AMF - Warnings Page:** [https://www.amf-france.org/en/warnings](https://www.amf-france.org/en/warnings)
*   **Adan (Association for the Development of Digital Assets) - French Regulatory Framework Overview:** [https://adan.eu/en/publications/the-french-regulatory-framework-for-markets-in-crypto-assets](https://adan.eu/en/publications/the-french-regulatory-framework-for-markets-in-crypto-assets)
*   **Notabene - Travel Rule & AML in France:** [https://notabene.id/crypto-travel-rule-france](https://notabene.id/crypto-travel-rule-france)
*   **Global Legal Insights - Blockchain & Crypto Laws France:** [https://www.globallegalinsights.com/practice-areas/blockchain-laws-and-regulations/france](https://www.globallegalinsights.com/practice-areas/blockchain-laws-and-regulations/france)
*   **Deloitte - MiCA Implementation in France:** [https://avocats.deloitte.fr/en/news/mica-regulation-licensing-applications-as-crypto-asset-service-providers-are-now-open-with-the-amf](https://avocats.deloitte.fr/en/news/mica-regulation-licensing-applications-as-crypto-asset-service-providers-are-now-open-with-the-amf)
*   **Aosphere - MiCA Member State Implementation Tracker:** [https://www.aosphere.com/aos/mica-tracker](https://www.aosphere.com/aos/mica-tracker) (Access may require subscription, but summary confirms France's transition period)
*   **ACPR (French Prudential Supervision and Resolution Authority) - Speech mentioning MiCA & DASP oversight:** [https://acpr.banque-france.fr/en/publications/speeches/montpellier-24-april-2024-central-bank-digital-currency-cbdc-and-crypto-assets-speech-first](https://acpr.banque-france.fr/en/publications/speeches/montpellier-24-april-2024-central-bank-digital-currency-cbdc-and-crypto-assets-speech-first)
*   **French Government Ordinances adapting law for MiCA/TFR (Oct 2024):** [https://www.gide.com/en/news/publication-of-two-ordinances-relating-to-crypto-asset-activities-based-on-mica-and-tfr](https://www.gide.com/en/news/publication-of-two-ordinances-relating-to-crypto-asset-activities-based-on-mica-and-tfr) (Summary from law firm Gide Loyrette Nouel)