Martinique

**Report on the Current Status of Retail Trading in Martinique**

**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).

**1. Identified Status:** Allowed-Regulated

**2. Detailed Narrative Explanation:**

Martinique, as an overseas department and region of France, is subject to French and European Union (EU) regulations concerning cryptocurrencies. Retail trading of cryptocurrencies (buying, selling, and holding) is legally permitted for individual citizens and residents in Martinique, but it operates within a regulated framework. This framework is primarily shaped by French national laws, which are increasingly aligned with EU directives, particularly the Markets in Crypto-Assets (MiCA) regulation.

**Regulatory Environment:**

*   **Legal Framework:** French law considers cryptocurrencies as digital assets (actifs numériques). While not legal tender, they are recognized as a store of value and a medium of exchange in private transactions. The legal framework has been evolving, notably with the PACTE Law (Plan d'Action pour la Croissance et la Transformation des Entreprises) of 2019, which established a regime for Digital Asset Service Providers (DASPs), known in French as Prestataires de Services sur Actifs Numériques (PSAN).
*   **EU Regulation (MiCA):** The MiCA regulation, published in the Official Journal of the EU on June 9, 2023, aims to create a harmonized framework for crypto-assets across the EU. Most of its provisions are set to apply from December 30, 2024, with specific rules for stablecoins having already come into effect on June 30, 2024. MiCA will supersede national regimes like the French PSAN framework, requiring crypto-asset service providers (CASPs, the MiCA equivalent of PSANs) to obtain authorization to operate within the EU, including Martinique. There is a transitional period for existing PSANs; those registered or agréé (licensed) before December 30, 2024, can continue their services for up to 18 months (until July 1, 2026) or until they are granted or refused a MiCA license. New providers must now seek authorization under MiCA.
*   **Regulatory Authorities:** The main regulatory bodies are the Autorité des Marchés Financiers (AMF) and the Autorité de Contrôle Prudentiel et de Résolution (ACPR). The AMF is responsible for overseeing PSANs/CASPs, ensuring investor protection, and market integrity. The ACPR is involved in the supervision of entities concerning anti-money laundering and counter-terrorist financing (AML/CFT) and, under MiCA, will be responsible for authorizing issuers of asset-referenced tokens and e-money tokens.
*   **KYC/AML Requirements:** PSANs/CASPs operating in Martinique (as in mainland France) are subject to stringent Know Your Customer (KYC) and Anti-Money Laundering (AML) / Counter-Terrorist Financing (CFT) obligations. These requirements include customer identification and verification, transaction monitoring, and reporting suspicious activities to the relevant authorities (e.g., TRACFIN in France). These obligations are fundamental to the French and EU regulatory approach to crypto-assets.
*   **Taxation:** Gains from the sale of cryptocurrencies by individuals are subject to taxation in France. Since January 1, 2023, these gains are generally taxed at a flat rate (prélèvement forfaitaire unique - PFU) of 30% (12.8% income tax and 17.2% social levies) or, if more favorable, can be declared under the progressive income tax scale if the activity is considered occasional. For professional traders, gains are typically taxed as industrial and commercial profits (Bénéfices Industriels et Commerciaux - BIC) or non-commercial profits (Bénéfices Non Commerciaux - BNC). The French tax administration provides guidance on how to declare these assets and gains. Specific tax rates for certain taxes, like the Taxe Intérieure sur la Consommation Finale d'Électricité (TICFE) relevant for mining, may have different rates in overseas departments like Martinique.
*   **Investor Warnings:** Financial authorities, including the AMF and the Institut d'Émission des Départements d'Outre-Mer (IEDOM) – which acts as the central bank delegate in the French overseas departments – regularly issue warnings to the public in Martinique and other overseas territories about the risks associated with investing in crypto-assets. These warnings highlight the volatility of cryptocurrencies, the lack of a clear legal status as money, the absence of guarantees on their value, and the prevalence of scams. Investors are advised to be cautious and to verify that any service provider they use is duly registered or licensed.

**Historical Context and Nuance:**

Initially, the cryptocurrency space in Martinique, as in much of the world, operated in a relatively unregulated environment. However, with the growing adoption and associated risks (money laundering, fraud, investor protection), French and subsequently EU authorities have progressively introduced a more structured regulatory landscape. The PACTE Law was a significant step in France, and MiCA represents the culmination of efforts to create a comprehensive and harmonized regulatory framework at the EU level.

While trading is allowed, the emphasis is increasingly on ensuring that it occurs through regulated intermediaries who comply with robust consumer protection and AML/CFT standards. The IEDOM's specific warnings to overseas investors underscore the authorities' concern for financial literacy and risk awareness in these territories.

**3. Specific, Relevant Text Excerpts:**

*   **IEDOM (Institut d'Émission des Départements d'Outre-Mer) warning (January 2024):** "En droit français, les cryptomonnaies n'ont pas de statut juridique clair et ne sont pas reconnues comme des instruments financiers. De ce fait, elles ne sont pour l'heure pas réglementées. Ce qui peut laisser place à grand nombre de dérives... Mais l'Iedom met en garde les ultramarins qui souhaitent investir dans les crypto-actifs." (Translation: "In French law, cryptocurrencies do not have a clear legal status and are not recognized as financial instruments. As a result, they are not currently regulated. This can lead to a large number of abuses... But the Iedom warns overseas residents who wish to invest in crypto-assets.") *Note: While this quote from early 2024 states they are "not regulated," it likely refers to a lack of a bespoke, comprehensive framework at the time, which MiCA and the evolving PSAN regime aim to address. The overarching French financial laws and AML/KYC requirements still applied.*
*   **IEDOM (Institut d'Émission des Départements d'Outre-Mer) warning (January 2024):** "Car ces crypto-monnaies, ou plutôt ces crypto-actifs comme les définit l'Iedom, ne sont pas des monnaies à proprement parler. Elles ne permettent pas de régler les achats du quotidien et n'ont pas de cours légal. En clair, personne n'est obligé de les accepter en paiement." (Translation: "Because these cryptocurrencies, or rather these crypto-assets as defined by Iedom, are not currencies strictly speaking. They cannot be used to pay for everyday purchases and do not have legal tender status. Clearly, no one is obliged to accept them as payment.")
*   **AMF (Autorité des Marchés Financiers) on PSANs and MiCA transition (June 2025):** "En France, les acteurs pouvant justifier avoir fourni des services sur crypto-actifs conformément au droit national avant cette date peuvent continuer à les fournir pendant une période maximale de 18 mois, soit jusqu'au 1er juillet 2026. Cette disposition s'applique jusqu'à ce qu'ils se voient octroyer ou refuser un agrément sous MiCA." (Translation: "In France, actors who can justify having provided crypto-asset services in accordance with national law before this date may continue to provide them for a maximum period of 18 months, i.e. until July 1, 2026. This provision applies until they are granted or refused authorization under MiCA.")
*   **Ministère de l'Économie, des Finances et de la Souveraineté Industrielle et Numérique on MiCA:** "Le règlement européen sur les marchés de crypto-actifs (Markets in Crypto-Assets, ou MiCA) a été publié au Journal officiel de l'Union européenne le 9 juin 2023. Il sera applicable à partir du 30 décembre 2024, à l'exception des dispositions sur les stablecoins qui sont entrées en application dès le 30 juin 2024." (Translation: "The European Markets in Crypto-Assets (MiCA) regulation was published in the Official Journal of the European Union on June 9, 2023. It will be applicable from December 30, 2024, with the exception of the provisions on stablecoins which came into application from June 30, 2024.")
*   **Village de la Justice (quoting French Monetary and Financial Code):** "Les prestataires de services sur actifs numériques sont tenus de respecter les exigences de l'AMF en matière de lutte contre le blanchiment d'argent (LCB) et de financement du terrorisme (CFT), conformément à l'article L561-2 du Code Monétaire et Financier." (Translation: "Digital asset service providers are required to comply with AMF requirements for combating money laundering (AML) and terrorist financing (CFT), in accordance with Article L561-2 of the Monetary and Financial Code.")
*   **Delubac (on French crypto taxation):** "L'imposition des cryptomonnaies est désormais une réalité pour les investisseurs et les utilisateurs. Le Code général des impôts, notamment les articles 150 VH et 200 C, établit les règles pour la taxation des gains réalisés sur les cryptomonnaies." (Translation: "The taxation of cryptocurrencies is now a reality for investors and users. The General Tax Code, notably articles 150 VH and 200 C, establishes the rules for the taxation of gains made on cryptocurrencies.")

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

*   RCI - Cryptomonnaies : l'IEDOM met en garde les investisseurs ultra-marins: https://www.rci.fm/martinique/infos/Economie/Cryptomonnaies-lIEDOM-met-en-garde-les-investisseurs-ultra-marins (Note: While the article is from Jan 2024, it reflects ongoing concerns and the IEDOM's role).
*   ZignSec - KYC for Cryptocurrency: https://zignsec.com/kyc-for-cryptocurrency/ (General information on KYC/AML for crypto, lists Martinique).
*   IDnow - Identity verification for crypto: Compliance Conversion Costs: https://www.idnow.io/solutions/crypto-kyc-aml/ (General information on KYC/AML for crypto, lists Martinique).
*   Alessa - AML Crypto: An AML Checklist for Cryptocurrency Exchanges: https://www.alessa.com/blog/aml-crypto-checklist-cryptocurrency-exchanges/ (General information on AML for crypto, lists Martinique).
*   Delubac - Les cryptomonnaies sont-elles imposables ? Guide fiscalité 2024 en France: https://www.delubac.com/fr/guide-fiscalite-cryptomonnaies-france-2024 (Information on French crypto taxation, applicable to Martinique).
*   RCI - Investir dans les crypto-monnaies : pas sans risques: https://www.rci.fm/martinique/infos/Economie/Investir-dans-les-crypto-monnaies-pas-sans-risques (Further warnings from IEDOM in Martinique).
*   Autorité des Marchés Financiers (AMF) - Crypto-actifs : l'AMF clarifie sa doctrine applicable aux PSAN autorisés dans le cadre de la loi PACTE afin de tenir compte de la période transitoire et faciliter la transition vers MiCA: https://www.amf-france.org/fr/actualites-publications/actualites/crypto-actifs-lamf-clarifie-sa-doctrine-applicable-aux-psan-autorises-dans-le-cadre-de-la-loi (Official AMF statement on PSANs and MiCA transition).
*   Beaubourg Avocats - Fiscalité du minage de cryptomonnaies : quel régime ?: https://www.beaubourg-avocats.fr/2021/07/07/fiscalite-du-minage-de-cryptomonnaies-quel-regime/ (Mentions specific tax rates for overseas departments including Martinique).
*   Cour des comptes - Les crypto-actifs : une régulation à renforcer: https://www.ccomptes.fr/fr/publications/les-crypto-actifs-une-regulation-renforcer (Report on crypto-asset regulation in France).
*   Village de la Justice - La réglementation des crypto-monnaies par l'AMF : un aperçu juridique: https://www.village-justice.com/articles/reglementation-des-crypto-monnaies-par-amf-apercu-juridique,49098.html (Overview of AMF's role and French crypto regulation).
*   Orange Cyberdefense - Blockchain & actifs numériques : MiCA, la sécurité comme prérequis: https://orangecyberdefense.com/fr/insights/blog/blockchain/blockchain-actifs-numeriques-mica-la-securite-comme-prerequis (Details on MiCA and its implications in France).
*   Weblex - Acheter et revendre des cryptomonnaies : quelle imposition ?: https://www.weblex.fr/acheter-et-revendre-des-cryptomonnaies-quelle-imposition (Information on French crypto taxation).
*   Crédit Agricole - Crypto-monnaie : fonctionnement et risques: https://www.credit-agricole.fr/particulier/epargner/marches-financiers/crypto-monnaie-fonctionnement-et-risques.html (General information from a French bank, including regulatory aspects and warnings).
*   Village de la Justice - Les problématiques fiscales en lien avec la cryptomonnaie: https://www.village-justice.com/articles/les-problematiques-fiscales-lien-avec-cryptomonnaie,49870.html (Discussion of French crypto taxation and MiCA implications).
*   Village de la Justice - Le statut juridique des crypto-monnaies: https://www.village-justice.com/articles/statut-juridique-des-crypto-monnaies,45410.html (Analysis of the legal status of cryptocurrencies in France).
*   Ministère de l'Économie, des Finances et de la Souveraineté Industrielle et Numérique - Le régime fiscal des cryptomonnaies: https://www.economie.gouv.fr/cedef/regime-fiscal-cryptomonnaies (Official French government page on crypto taxation and MiCA).