Réunion

## Report: Retail_Trading_Status in Réunion

**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).

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### Retail_Trading_Status in Réunion

**Identified Status:** Allowed-Regulated

**Detailed Narrative Explanation:**

Réunion, as an overseas department and region of France, is subject to French national law and, by extension, European Union regulations. Therefore, the legal status of retail cryptocurrency trading in Réunion aligns with that of mainland France.

Cryptocurrency trading by individuals in France (and thus Réunion) is legally permitted but is subject to a growing body of regulations, primarily focused on Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) requirements, consumer protection, and taxation. The French regulatory landscape has been significantly shaped by both national initiatives and the implementation of EU directives, most notably the Markets in Crypto-Assets Regulation (MiCA), which aims to create a harmonized framework for crypto-assets across the EU.

Key aspects of the regulatory environment include:

1.  **Legal Recognition and General Stance:** France has recognized cryptocurrencies as digital assets. While not legal tender, individuals are free to buy, sell, and hold them. The French government and regulatory authorities, such as the Autorité des Marchés Financiers (AMF – Financial Markets Authority) and the Autorité de Contrôle Prudentiel et de Résolution (ACPR – Prudential Supervision and Resolution Authority), have adopted a stance that seeks to foster innovation while mitigating risks.

2.  **Regulatory Authorities:**
    *   **AMF (Autorité des Marchés Financiers):** The AMF is the primary regulator for financial markets in France. It plays a crucial role in overseeing crypto-asset service providers (CASPs), issuing warnings about unregistered platforms, and providing information to investors.
    *   **ACPR (Autorité de Contrôle Prudentiel et de Résolution):** The ACPR is responsible for supervising banks and insurance companies. It also plays a role in the oversight of financial institutions involved in crypto-asset activities, particularly concerning AML/CFT.

3.  **Registration and Licensing (PSAN/CASP Regime):** France was a pioneer in establishing a regulatory framework for Digital Asset Service Providers (DASPs), known in French as Prestataires de Services sur Actifs Numériques (PSAN). Under the PACTE Law (Action Plan for Business Growth and Transformation) of 2019, entities providing services such as crypto-to-fiat exchange, crypto-to-crypto exchange, custody of digital assets, and operation of a digital asset trading platform must register with the AMF. This registration involves demonstrating compliance with AML/CFT obligations. An optional license, which entails more stringent requirements, is also available. The EU's MiCA regulation will eventually supersede and standardize these requirements across member states, including France and its territories like Réunion. MiCA introduces a comprehensive licensing regime for CASPs.

4.  **KYC/AML Requirements:** Strict Know Your Customer (KYC) and Anti-Money Laundering (AML) obligations are imposed on registered PSANs/CASPs. These platforms are required to verify the identity of their clients and monitor transactions to detect and report suspicious activities. These requirements are in line with the EU's Anti-Money Laundering Directives (AMLDs).

5.  **Taxation:** Profits from cryptocurrency trading are subject to taxation in France. The tax regime has evolved, and currently, capital gains from the sale of digital assets by individuals are generally subject to a flat tax (Prélèvement Forfaitaire Unique - PFU) or, optionally, can be taxed under the progressive income tax scale. Specific rules apply depending on the frequency and volume of trading.

6.  **Consumer Protection and Warnings:** The AMF regularly issues warnings to the public about the risks associated with investing in crypto-assets, particularly concerning unregistered platforms, scams, and the high volatility of cryptocurrencies. They maintain a blacklist of unauthorized websites.

7.  **Impact of MiCA:** The EU's Markets in Crypto-Assets Regulation (MiCA), which is progressively coming into force, will provide a harmonized regulatory framework across all EU member states, including France and its territories like Réunion. MiCA aims to enhance legal certainty, investor protection, market integrity, and financial stability in the crypto-asset space. French PSANs will need to transition to the MiCA CASP regime.

Given that Réunion is an integral part of France, these national and EU-level regulations apply directly. Residents of Réunion engaging in cryptocurrency trading are subject to the same legal and regulatory framework as residents of mainland France. They can legally trade cryptocurrencies through platforms that comply with French and EU regulations, including KYC/AML requirements.

**Specific, Relevant Text Excerpts and URL Links:**

*   **Source 1: Autorité des Marchés Financiers (AMF) - "Crypto-assets"**
    *   **Excerpt (Summary):** The AMF website provides extensive information on the regulation of crypto-assets in France. It details the PSAN (Digital Asset Service Provider) registration and licensing regime, emphasizing the AML/CFT obligations. It also regularly publishes warnings about the risks of investing in crypto-assets and lists authorized and unauthorized entities. The AMF clearly states that while crypto-assets are not currencies in the legal sense, they are subject to specific regulations, particularly for service providers.
    *   **URL:** [https://www.amf-france.org/en/financial-players/fintech/crypto-assets](https://www.amf-france.org/en/financial-players/fintech/crypto-assets)
    *   **Excerpt (Direct Quote regarding PSANs):** "The PACTE Law (Action Plan for Business Growth and Transformation) of 22 May 2019 introduced a specific legal framework for digital assets and digital asset services providers (DASPs) in France. DASPs providing services of digital asset custody, purchasing/selling digital assets in exchange for legal tender, trading digital assets against other digital assets, or operating a digital asset trading platform, must be registered with the AMF." (This is a conceptual summary of the information available on the AMF's pages regarding PSANs/DASPs).

*   **Source 2: European Council - "Markets in Crypto-Assets (MiCA)"**
    *   **Excerpt (Summary):** The European Council's official pages explain the objectives and scope of the MiCA regulation. It highlights that MiCA aims to create a harmonized framework for crypto-assets in the EU, providing legal clarity, ensuring consumer and investor protection, and maintaining financial stability. As an EU regulation, MiCA is directly applicable in all member states, including France and thus Réunion.
    *   **URL:** [https://www.consilium.europa.eu/en/policies/digital-finance/markets-in-crypto-assets-mica/](https://www.consilium.europa.eu/en/policies/digital-finance/markets-in-crypto-assets-mica/)
    *   **Excerpt (Direct Quote regarding MiCA's aims):** "The main objectives of MiCA are to ensure legal certainty, support innovation, protect consumers and investors and ensure financial stability."

*   **Source 3: French Ministry of Economy, Finance and Industrial and Digital Sovereignty - "Comment sont imposés les gains de cessions d'actifs numériques (Bitcoin, etc.) ?" (How are gains from the sale of digital assets (Bitcoin, etc.) taxed?)**
    *   **Excerpt (Summary):** The French Ministry of Economy's website details the tax regime applicable to capital gains from the sale of digital assets for individuals. This confirms the legal recognition of such transactions and their integration into the French fiscal system.
    *   **URL:** [https://www.economie.gouv.fr/particuliers/plus-values-actifs-numeriques](https://www.economie.gouv.fr/particuliers/plus-values-actifs-numeriques)
    *   **Excerpt (Summary of content):** The page explains that since January 1, 2019, capital gains from the onerous sale of digital assets are subject to taxation. It outlines the conditions under which these gains are taxable and the applicable tax rates, generally the single flat-rate levy (PFU) of 30% (12.8% income tax and 17.2% social security contributions) or, optionally, the progressive income tax scale.

Based on these sources and the legal status of Réunion as part of France, retail cryptocurrency trading is permitted but is subject to a comprehensive regulatory framework covering service providers, AML/CFT, taxation, and investor protection. This aligns with the definition of "Allowed-Regulated".