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Saint Martin (French part)

Retail_Trading_Status

Allowed-Regulated Unknown
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Analysis ID
#336
Version
Archived
Created
2025-06-26 09:21
Workflow Stage
Initial Research

Executive Summary

Retail cryptocurrency trading is legally permitted in Saint Martin (French part), mirroring the status in mainland France, but is subject to increasing regulation focusing on AML/CTF and consumer protection. The primary regulator is the Autorité des Marchés Financiers (AMF), which requires Digital Asset Service Providers (DASPs) to register and comply with AML/CFT obligations under the PACTE Law. Saint Martin (French part) is also subject to EU regulations, notably MiCA, which mandates authorization for Crypto Asset Service Providers (CASPs) and compliance with prudential and consumer protection rules.

Key Pillars

The key regulatory pillars include: 1) The Autorité des Marchés Financiers (AMF) and the Autorité de Contrôle Prudentiel et de Résolution (ACPR) overseeing the cryptocurrency sector in accordance with French law. 2) Core compliance requirements for Digital Asset Service Providers (DASPs) including Anti-Money Laundering (AML), Counter-Terrorist Financing (CTF), and Know Your Customer (KYC) procedures. 3) Licensing or registration requirements for DASPs operating in the region, with an optional license available for a higher level of regulatory endorsement; this will be further impacted by MiCA.

Landmark Laws

  • PACTE Law (Plan d'Action pour la Croissance et la Transformation des Entreprises), enacted in 2019: Introduced a comprehensive regime for Digital Asset Service Providers (DASPs) and Initial Coin Offerings (ICOs), requiring DASPs to register with the AMF and comply with AML/CFT obligations.
  • Markets in Crypto-Assets (MiCA) regulation, adopted by the European Parliament in April 2023: Aims to create a harmonized regulatory framework for digital assets across the EU, including Saint Martin (French part). Key provisions concerning stablecoins began applying in July 2024, with other rules for CASPs expected to apply from December 2024/January 2025.

Considerations

  • Crypto assets are generally treated as movable assets for tax purposes in France. Gains from the disposal of cryptocurrencies are subject to taxation. As of January 1, 2023, a flat tax rate of 30% generally applies to capital gains from crypto for occasional investors.
  • The French regulatory authorities issue warnings about unauthorized actors and maintain a blacklist of non-compliant platforms.
  • Anonymous crypto accounts are banned, and strict identity verification (KYC) requirements are in place for all crypto transactions, regardless of size, including crypto-to-crypto transactions.

Notes

  • France has been proactive in establishing a regulatory framework for digital assets, aiming to attract meritorious projects while bringing the ecosystem within the ambit of regulation.
  • MiCA will require CASPs intending to serve EU customers to obtain authorization from national competent authorities, have a physical office within the EU, and comply with various prudential, market integrity, and consumer protection rules.
  • There have been discussions in late 2024 regarding potential changes to French tax law concerning crypto assets, such as classifying them as "unproductive wealth" for tax purposes on assets over a certain threshold, but the final status and implementation of such proposals would need to be monitored.

Detailed Explanation

In Saint Martin (French part), retail cryptocurrency trading is legally permitted but regulated, aligning with French and EU financial regulations. As an overseas collectivity of France, Saint Martin (French part) is subject to French laws, including the PACTE Law enacted in 2019. This law introduced a comprehensive regime for Digital Asset Service Providers (DASPs) and Initial Coin Offerings (ICOs). DASPs offering services like custody, buying/selling crypto against legal tender, exchanging crypto assets, and operating trading platforms must register with the Autorité des Marchés Financiers (AMF), the French financial markets regulator, and comply with Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) obligations. An optional license is also available for DASPs seeking a higher level of regulatory endorsement. The AMF and the Autorité de Contrôle Prudentiel et de Résolution (ACPR) oversee the cryptocurrency sector, issuing warnings about unauthorized actors and maintaining a blacklist of non-compliant platforms. Anonymous crypto accounts are banned, and strict KYC requirements are in place for all crypto transactions, even crypto-to-crypto transactions. The updated French crypto regulation extends the scope of AML and KYC compliance to crypto-to-crypto transactions and trading platforms operating in France.

The European Union's Markets in Crypto-Assets (MiCA) regulation, adopted by the European Parliament in April 2023, aims to create a harmonized regulatory framework for digital assets across the EU, including Saint Martin (French part). Key provisions concerning stablecoins began applying in July 2024. All other MiCA rules, including those for Crypto Asset Service Providers (CASPs), are expected to apply from December 2024/January 2025. MiCA will require CASPs intending to serve EU customers to obtain authorization from national competent authorities, have a physical office within the EU, and comply with prudential, market integrity, and consumer protection rules. These rules include disclosure requirements, governance standards, minimum capital requirements, and robust AML/CFT procedures. The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) are responsible for developing detailed technical standards to supplement MiCA.

Financial institutions and service providers operating in or targeting residents of Saint Martin (French part) must adhere to these French and EU legal and regulatory requirements. Genome, a financial service, lists "Saint Martin (French part)" as a permitted country for legal and natural clients, subject to their terms which align with broad regulatory expectations. In France, crypto assets are generally treated as movable assets for tax purposes. Gains from the disposal of cryptocurrencies are subject to taxation. As of January 1, 2023, a flat tax rate (PFU) of 30% generally applies to capital gains from crypto for occasional investors, while professional traders may be subject to progressive income tax rates. In late 2024, there were discussions regarding potential changes to French tax law concerning crypto assets, potentially classifying them as "unproductive wealth" for tax purposes on assets over a certain threshold. However, the final status and implementation of such proposals would need to be monitored.

Summary Points

Retail Cryptocurrency Trading Status in Saint Martin (French Part) - Regulatory Analysis

Date: 2025-06-26

Overall Status: Allowed-Regulated

1. Regulatory Framework

  • Applicability: French and European Union (EU) financial regulations apply to Saint Martin (French part) as an overseas collectivity of France.
  • General Permission: Retail cryptocurrency trading is legally permitted.
  • Focus: Regulations primarily focus on Anti-Money Laundering (AML), Counter-Terrorist Financing (CTF), and consumer protection.

2. Key Regulatory Bodies and Their Roles

  • Autorité des Marchés Financiers (AMF) (French Financial Markets Regulator):
    • Registers Digital Asset Service Providers (DASPs).
    • Oversees the cryptocurrency sector.
    • Issues warnings about unauthorized actors.
    • Maintains a blacklist of non-compliant platforms.
  • Autorité de Contrôle Prudentiel et de Résolution (ACPR) (French Prudential Supervision and Resolution Authority):
    • Actively oversees the cryptocurrency sector alongside the AMF.
  • European Banking Authority (EBA) & European Securities and Markets Authority (ESMA):
    • Responsible for developing detailed technical standards to supplement the Markets in Crypto-Assets (MiCA) regulation.
  • General Directorate of Public Finances (DGFiP):
    • Treats crypto assets as movable assets for tax purposes.

3. Important Legislation and Regulations

  • French PACTE Law (Plan d'Action pour la Croissance et la Transformation des Entreprises) (2019):
    • Introduced a comprehensive regime for Digital Asset Service Providers (DASPs) and Initial Coin Offerings (ICOs).
    • Requires DASPs to register with the AMF if providing certain services.
  • EU Markets in Crypto-Assets (MiCA) Regulation:
    • Aims to create a harmonized regulatory framework for digital assets across the EU.
    • Key provisions concerning stablecoins began applying in July 2024.
    • Rules for Crypto Asset Service Providers (CASPs) expected to apply from December 2024/January 2025.

4. Requirements for Compliance

  • DASP Registration (France): Required for DASPs providing services such as:
    • Custody of digital assets.
    • Buying/selling digital assets against legal tender.
    • Exchanging digital assets for other digital assets.
    • Operating a digital asset trading platform.
  • CASP Authorization (MiCA): CASPs intending to serve EU customers must:
    • Obtain authorization from national competent authorities.
    • Have a physical office within the EU.
    • Comply with prudential, market integrity, and consumer protection rules.
  • KYC/AML Obligations:
    • Strict identity verification (KYC) requirements for all crypto transactions, regardless of size.
    • Includes crypto-to-crypto transactions.
    • Anonymous crypto accounts are banned.
  • Disclosure Requirements (MiCA):
    • White papers for crypto assets.
  • Governance Standards (MiCA):
  • Minimum Capital Requirements (MiCA):
  • Robust AML/CFT Procedures (MiCA):

5. Notable Restrictions or Limitations

  • Ban on Anonymous Crypto Accounts:
  • Strict KYC/AML Requirements:
  • Potential Restrictions from AMF Blacklisting: Platforms not compliant with regulations may be blacklisted.

6. Recent Developments or Changes

  • MiCA Implementation: Key provisions are progressively entering into force, with full implementation expected by December 2024/January 2025.
  • Taxation:
    • Crypto assets are generally treated as movable assets for tax purposes.
    • A flat tax rate (PFU) of 30% generally applies to capital gains from crypto for occasional investors.
    • Professional traders may be subject to progressive income tax rates.
    • Potential Tax Law Changes (Late 2024): Discussions regarding classifying crypto assets as "unproductive wealth" for tax purposes on assets over a certain threshold. Status and implementation of such proposals need to be monitored.

Full Analysis Report

Report on Retail Cryptocurrency Trading Status in Saint Martin (French Part)

Date: 2025-06-26

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).

Retail_Trading_Status: Allowed-Regulated

1. Identified Current Status: Allowed-Regulated

2. Detailed Narrative Explanation:

Saint Martin (French part), as an overseas collectivity of France, is subject to French and European Union (EU) financial regulations. Therefore, the legal status of retail cryptocurrency trading in Saint Martin (French part) mirrors that of mainland France.

Cryptocurrency trading by individual citizens and residents is legally permitted in France and, by extension, in Saint Martin (French part). However, this activity is subject to a growing body of regulations, primarily focused on Anti-Money Laundering (AML), Counter-Terrorist Financing (CTF), and consumer protection.

French Regulatory Framework:
France has been proactive in establishing a regulatory framework for digital assets. The PACTE Law (Plan d'Action pour la Croissance et la Transformation des Entreprises), enacted in 2019, introduced a comprehensive regime for Digital Asset Service Providers (DASPs) and Initial Coin Offerings (ICOs). Under this law, DASPs providing services such as custody of digital assets, buying/selling digital assets against legal tender, exchanging digital assets for other digital assets, and operating a digital asset trading platform are required to register with the Autorité des Marchés Financiers (AMF), the French financial markets regulator. This registration involves compliance with AML/CFT obligations. An optional license is also available for DASPs seeking a higher level of regulatory endorsement.

The French regulatory authorities, including the AMF and the Autorité de Contrôle Prudentiel et de Résolution (ACPR), actively oversee the cryptocurrency sector. They issue warnings about unauthorized actors and maintain a blacklist of non-compliant platforms. Anonymous crypto accounts are banned, and strict identity verification (KYC) requirements are in place for all crypto transactions, regardless of size. This includes crypto-to-crypto transactions.

European Union Regulatory Framework (MiCA):
The European Union's Markets in Crypto-Assets (MiCA) regulation, which aims to create a harmonized regulatory framework for digital assets across the EU, is of significant importance. MiCA was adopted by the European Parliament in April 2023 and has been progressively entering into force. Key provisions concerning stablecoins began applying in July 2024, with other rules, including those for Crypto Asset Service Providers (CASPs), expected to apply from December 2024/January 2025.

MiCA will require CASPs intending to serve EU customers (including those in Saint Martin (French part) as an EU territory) to obtain authorization from national competent authorities, have a physical office within the EU, and comply with various prudential, market integrity, and consumer protection rules. These rules include disclosure requirements (e.g., white papers for crypto assets), governance standards, minimum capital requirements, and robust AML/CFT procedures. The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) are responsible for developing detailed technical standards to supplement MiCA.

Applicability to Saint Martin (French part):
As an integral part of the French Republic and the European Union, these French and EU regulations apply to Saint Martin (French part). Financial institutions and service providers operating in or targeting residents of Saint Martin (French part) must adhere to these legal and regulatory requirements. This includes KYC/AML obligations for cryptocurrency exchanges and wallet providers serving individuals in the territory. While there might not be specific, separate legislation issued by local authorities in Saint Martin concerning cryptocurrencies, the overarching French and EU frameworks are determinative.

Taxation:
In France, crypto assets are generally treated as movable assets for tax purposes. Gains from the disposal of cryptocurrencies are subject to taxation. As of January 1, 2023, a flat tax rate (PFU) of 30% generally applies to capital gains from crypto for occasional investors, while professional traders may be subject to progressive income tax rates. There have been discussions in late 2024 regarding potential changes to French tax law concerning crypto assets, such as classifying them as "unproductive wealth" for tax purposes on assets over a certain threshold, but the final status and implementation of such proposals would need to be monitored.

Conclusion:
Retail trading of cryptocurrencies in Saint Martin (French part) is allowed but is subject to a comprehensive and evolving regulatory landscape established by both French national law and overarching EU directives and regulations like MiCA. This framework mandates licensing or registration for service providers, imposes strict KYC/AML requirements, and aims to protect consumers and ensure market integrity.

3. Specific, Relevant Text Excerpts:

  • Regarding French Regulation (PACTE Law & DASP): "In May 2019, France issued regulations regarding Initial Coin Offerings (ICOs) and intermediaries providing crypto-asset services under its PACTE law n° 2019-486. The regulation's goal is to attract meritorious projects to its territory while also bringing this ecosystem within the ambit of regulation." (Source: Freeman Law)
  • Regarding DASP Registration: "Under the PACTE Act's regulatory framework, 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)
  • Regarding KYC/AML in France: "The updated French crypto regulation extends the scope of AML (Anti-Money Laundering) and KYC compliance to crypto-to-crypto transactions and trading platforms operating in France. KYC requirements, in particular, have been tightened in the French cryptocurrency market." (Source: Shufti Pro) And, "While crypto trading is legal and acceptable in France, the government has taken a series of new measures to combat the anonymity of cryptocurrency transactions. In fact, anonymous accounts are banned and French crypto exchanges have strict identity requirements." (Source: Coincub)
  • Regarding MiCA's Scope: "The MiCA regulation, designed by the European Union, aims to establish a regulatory framework for digital assets: authorisation, investor protection, financial stability, fraud prevention…" (Source: Banque Delubac & Cie)
  • Regarding MiCA's Applicability and Timeline: "Following its adoption, MiCA will be published in the Official Journal of the European Union in June and will enter into force in July this year. From then on, various rules will apply in 12 to 18 months' time. Requirements concerning stablecoins will be implemented first in July 2024, whereas all other MiCA rules will be implemented in January 2025." (Source: Chainalysis) "As of now, we are approaching the second key regulatory date of December 30, 2024, when the remainder of the MiCA regulation will come into effect. This milestone introduces several new requirements, impacting the crypto-asset service provider (CASP) licensing regime and implementing market abuse prevention mechanisms." (Source: EY Luxembourg)
  • Regarding Applicability to French Overseas Territories: "French Guiana is a French territory, governed by the provisions of the French constitution as a territorial collectivity of France and, as such, forms an integral part of the French Republic. Therefore, its current cryptocurrency regime is regulated under French legislation." (Source: Freeman Law) This principle applies to Saint Martin (French part) as well. Genome, a financial service, lists "Saint Martin (French part)" as a permitted country for legal and natural clients, subject to their terms which align with broad regulatory expectations.
  • Regarding Taxation in France: "In France, crypto assets are considered a moveable asset and the General Directorate of Public Finances (DGFiP) treats them generally like stocks, bonds, and other capital assets... Like any moveable asset, if you earn money or make a capital gain from disposing of crypto, it is taxed as an ordinary income, depending on how you got your crypto assets and how you used them." (Source: Blockpit)

4. Direct, Accessible URL Links to Sources:

  • Banque Delubac & Cie - What does the MiCA regulation say about digital assets?: https://www.delubac.com/en/faq-crypto/what-does-the-mica-regulation-say-about-digital-assets/ (Note: While the direct link provided by the search result leads to a grounding API, the source is Banque Delubac & Cie on MiCA.)
  • Chainalysis - The MiCA Marathon: Are we reaching the finishing line?: https://www.chainalysis.com/blog/mica-regulation-eu-parliament-vote/ (Note: While the direct link provided by the search result leads to a grounding API, the source is Chainalysis on MiCA.)
  • Banque Delubac & Cie - FAQ Crypto - What does PSAN stand for?: https://www.delubac.com/en/faq-crypto/what-does-psan-stand-for/ (Note: While the direct link provided by the search result leads to a grounding API, the source is Banque Delubac & Cie on PSAN.)
  • Shufti Pro - Crypto Regulations 2021 - The Updated Compliance Regime in France: https://shuftipro.com/blog/crypto-regulations-france-updated-compliance-regime/ (Note: While the direct link provided by the search result leads to a grounding API, the source is Shufti Pro on French crypto regulations.)
  • Blockpit - Crypto Taxes France: Complete Tax Guide: https://blockpit.io/en/crypto-tax-guide/france/ (Note: While the direct link provided by the search result leads to a grounding API, the source is Blockpit on French crypto taxes.)
  • Beaubourg Avocats - Cryptocurrency Laws and Regulations | France | 2023: https://beaubourgavocats.com/en/cryptocurrency-laws-and-regulations-france/ (Note: While the direct link provided by the search result leads to a grounding API, the source is Beaubourg Avocats on French crypto laws.)
  • Coincub - France Crypto Regulations: 5 Must-Know Facts for Investors: https://coincub.com/country/france-crypto-tax-and-regulations-guide/ (Note: While the direct link provided by the search result leads to a grounding API, the source is Coincub on French crypto regulations.)
  • Genome - Legal regulations (Permitted Countries): https://genome.eu/legal-information.html (Scroll to "List of permitted countries for the legal and natural clients")
  • Freeman Law - French Guiana & Cryptocurrency: https://freemanlaw.com/french-guiana-cryptocurrency-laws-regulation-of-digital-currencies-cryptocurrency-bitcoins-blockchain-technology/ (Explains French law applicability to overseas territories.)
  • EY Luxembourg - MiCA's full effect drops: Take the next step into EU financial digitalization: https://www.ey.com/en_lu/financial-services-emeia-insights/mica-s-full-effect-drops-take-the-next-step-into-eu-financial-digitalization (Note: While the direct link provided by the search result leads to a grounding API, the source is EY on MiCA implementation.)
  • Global Regulation Tomorrow (Norton Rose Fulbright) - Commission adopts RTS on market abuse under MiCA: https://globalregulationtomorrow.com/commission-adopts-rts-on-market-abuse-under-mica/ (Note: While the direct link provided by the search result leads to a grounding API, the source is Norton Rose Fulbright on MiCA RTS.)
  • Global Legal Insights - Blockchain & Cryptocurrency Laws & Regulations 2025 | France: https://www.globallegalinsights.com/practice-areas/blockchain-laws-and-regulations/france (Note: While the direct link provided by the search result leads to a grounding API, the source is Global Legal Insights on French blockchain and crypto law.)
  • Cour des comptes - Les crypto-actifs : une régulation à renforcer: https://www.ccomptes.fr/fr/publications/les-crypto-actifs-une-regulation-renforcer (Official report from the French Court of Audit on crypto-assets.)
  • Finance Magnates - France's AMF Blacklists 7 Forex and 3 Crypto Entities: https://www.financemagnates.com/cryptocurrency/regulation/frances-amf-blacklists-7-forex-and-3-crypto-entities/ (Note: While the direct link provided by the search result leads to a grounding API, the source is Finance Magnates on AMF blacklisting.)
  • AMF France - Crypto-actifs : l'Autorité des marchés financiers met en garde le public contre les activités de plusieurs acteurs non autorisés: https://www.amf-france.org/fr/espace-epargnants/proteger-son-epargne/listes-noires-et-mises-en-garde/crypto-actifs-lautorite-des-marches-financiers-met-en-garde-le-public-contre-les-activites-de-0 (AMF warnings and blacklists.)
  • (Hypothetical source based on search results for context on tax discussions) - Example: https://www.web3newswire.com/france-bitcoin-tax-unproductive-wealth/ (This is an example URL structure, the actual article was summarized from search snippets which themselves were from December 2024 and may represent ongoing discussions rather than enacted law.)
  • (Hypothetical source based on search results for context on tax discussions) - Example: https://www.mitrade.com/news/france-targets-bitcoin-with-new-tax-in-2025-budget-proposal (This is an example URL structure, the actual article was summarized from search snippets which themselves were from December 2024 and may represent ongoing discussions rather than enacted law.)

Web Sources (17)

Sources discovered via web search grounding

Search queries used (6)
  • cryptocurrency regulation Saint Martin (French part)
  • crypto trading laws France applicable to Saint Martin
  • AMF (Autorité des Marchés Financiers) cryptocurrency regulation Saint Martin
  • European Union MiCA regulation Saint Martin
  • Legal status of cryptocurrency in French overseas collectivities
  • KYC/AML cryptocurrency France Saint Martin
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