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Saint Martin (French part)

Retail_Trading_Status

Allowed-Regulated Unknown
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Analysis ID
#54
Version
Archived
Created
2025-04-12 06:41
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Live

Executive Summary

Retail cryptocurrency trading is allowed and regulated in Saint Martin (French part) under French and EU laws, primarily overseen by the Autorité des Marchés Financiers (AMF) and the Autorité de Contrôle Prudentiel et de Résolution (ACPR). Key requirements include registration or licensing for Digital Asset Service Providers (DASPs/PSANs) under the PACTE Act and compliance with stringent AML/KYC rules. The EU's MiCA regulation is being implemented, which will further harmonize the regulatory landscape and require authorization for Crypto-Asset Service Providers (CASPs).

Key Pillars

  • Primary regulators: Autorité des Marchés Financiers (AMF) and Autorité de Contrôle Prudentiel et de Résolution (ACPR).
  • Core Compliance: Stringent Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) requirements, including Know Your Customer (KYC) procedures.
  • Licensing/Registration: Mandatory registration with the AMF for firms providing crypto-to-fiat exchange and digital asset custody services under the PACTE Act; transitioning to MiCA authorization by July 1, 2026.

Landmark Laws

  • PACTE Act (Plan d'Action pour la Croissance et la Transformation des Entreprises), 2019: Established a domestic regulatory framework for crypto-assets, introducing the status of Digital Asset Service Providers (DASPs/PSANs).
  • Markets in Crypto-Assets (MiCA) Regulation, June 2023 (effective December 30, 2024, with stablecoin provisions from June 30, 2024): Creates a harmonized framework across all EU member states, mandating authorization for Crypto-Asset Service Providers (CASPs) and establishing requirements for consumer protection, market integrity, prudential safeguards, governance, and AML/CFT compliance.

Considerations

  • Legal classification of crypto assets is as assets subject to financial regulations.
  • Risks are associated with unregistered entities.
  • KYC checks required for all transactions due to a €0 threshold, effectively banning anonymity.

Notes

  • Saint Martin (French part) is subject to French laws.
  • Transition period until July 1, 2026, for existing French DASPs/PSANs to obtain MiCA authorization.
  • The new crypto transaction limit for KYC checks is set as €0, instead of the previous €1000 limit. This has effectively banned anonymity on the French crypto market, as even small crypto transactions must be accompanied by KYC.

Detailed Explanation

Retail cryptocurrency trading is permitted and regulated in Saint Martin (French part) because, as an overseas collectivity of France, it is subject to both French and EU laws. The primary regulators are the Autorité des Marchés Financiers (AMF) and the Autorité de Contrôle Prudentiel et de Résolution (ACPR). France's regulatory framework, established by the PACTE Act in 2019, introduces the status of Digital Asset Service Providers (DASPs or PSANs). Registration with the AMF is mandatory for firms providing crypto-to-fiat exchange and digital asset custody services; a more stringent licensing regime is also available. All registered and licensed DASPs/PSANs must comply with Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) requirements, including Know Your Customer (KYC) procedures, aligning with EU Anti-Money Laundering Directives (AMLD). The KYC transaction limit is set as €0, effectively banning anonymity.

The EU's Markets in Crypto-Assets (MiCA) Regulation, effective December 30, 2024 (with stablecoin provisions applying from June 30, 2024), creates a harmonized framework across all EU member states, including France and its territories like Saint Martin. MiCA mandates authorization for Crypto-Asset Service Providers (CASPs) operating within the EU, establishing requirements for consumer protection, market integrity, prudential safeguards, governance, and AML/CFT compliance. Existing French DASPs/PSANs registered before December 30, 2024, have until July 1, 2026, to obtain MiCA authorization, during which they can continue operating under the national regime. Individuals in Saint Martin can legally buy, sell, and hold cryptocurrencies, but service providers must adhere to French/EU regulations, including KYC verification and transaction monitoring. The French framework, reinforced by MiCA and the Transfer of Funds Regulation (TFR), mandates traceability for crypto transactions. The AMF and ACPR oversee the market, issue registrations/licenses, enforce compliance, and publish warnings about the risks associated with crypto-assets, particularly those offered by unregistered entities.

Summary Points

**Retail Cryptocurrency Trading Status in Saint Martin (French part) - Regulatory Overview**

**I. General Status:**

*   **Allowed-Regulated:** Retail cryptocurrency trading (buying, selling, and holding) is permitted but regulated.
*   **Governing Law:** French national laws and applicable EU regulations apply due to Saint Martin being an overseas collectivity of France.

**II. Key Regulatory Bodies:**

*   **Autorité des Marchés Financiers (AMF):** French Financial Markets Authority.
    *   Role: Oversees the market, issues registrations/licenses, enforces compliance, and publishes warnings about crypto-asset risks.
*   **Autorité de Contrôle Prudentiel et de Résolution (ACPR):** French Prudential Supervision and Resolution Authority.
    *   Role: Oversees the market, issues registrations/licenses, enforces compliance.

**III. Important Legislation and Regulations:**

*   **French PACTE Law (2019):**
    *   Established a regulatory framework for crypto-assets in France.
    *   Introduced Digital Asset Service Providers (DASPs/PSANs).
    *   Mandatory registration with the AMF for specific services (crypto-to-fiat exchange, digital asset custody).
    *   Optional, more stringent licensing regime available.
    *   Requires compliance with AML/CFT requirements, including KYC procedures.
*   **EU Markets in Crypto-Assets (MiCA) Regulation:**
    *   Creates a harmonized framework across all EU member states, including France and Saint Martin.
    *   Entered into force in June 2023.
    *   Stablecoin provisions apply from June 30, 2024.
    *   Remaining regulations apply from December 30, 2024.
    *   Mandates authorization for Crypto-Asset Service Providers (CASPs) operating within the EU.
    *   Establishes requirements for consumer protection, market integrity, prudential safeguards, governance, and AML/CFT compliance.
*   **EU Anti-Money Laundering Directives (AMLD):**
    *   Underpins AML/CFT requirements for DASPs/PSANs and CASPs.
*   **Transfer of Funds Regulation (TFR):**
    *   Mandates traceability for crypto transactions.

**IV. Requirements for Compliance (for Service Providers):**

*   **Registration/Authorization:**
    *   Currently, registration with the AMF is required for certain DASPs/PSANs under the PACTE Law.
    *   Transitioning to MiCA authorization required by December 30, 2024, to continue operations.
    *   Existing French DASPs/PSANs registered before December 30, 2024, have a transitional period until July 1, 2026, to obtain MiCA authorization.
*   **Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT):**
    *   Robust AML/CFT programs are mandatory.
    *   Includes Know Your Customer (KYC) procedures (identity verification).
    *   Transaction monitoring.
    *   Reporting suspicious activities.
*   **Consumer Protection:**
    *   MiCA establishes requirements for consumer protection.
*   **Market Integrity:**
    *   MiCA establishes requirements for market integrity.
*   **Prudential Safeguards:**
    *   MiCA establishes requirements for prudential safeguards (e.g., capital requirements).
*   **Governance:**
    *   MiCA establishes requirements for governance.

**V. Notable Restrictions or Limitations:**

*   **KYC Requirements:**
    *   Strict KYC requirements apply to users of crypto exchanges and service providers.
    *   Even small crypto transactions must be accompanied by KYC.
*   **Traceability:**
    *   Crypto transactions are subject to traceability requirements.
*   **Unregistered Entities:**
    *   The AMF publishes warnings about the risks associated with crypto-assets, particularly those offered by unregistered entities.

**VI. Recent Developments or Changes:**

*   **MiCA Implementation:** The EU's MiCA regulation is being implemented, with key dates in 2024 and 2026.
    *   Stablecoin provisions apply from June 30, 2024.
    *   Remaining regulations apply from December 30, 2024.
    *   Transitional period for existing French DASPs/PSANs until July 1, 2026, to obtain MiCA authorization.
*   **Lowered KYC Threshold:** The new crypto transaction limit for KYC checks is set as €0, effectively banning anonymity.

Full Analysis Report

Report: Retail Cryptocurrency Trading Status in Saint Martin (French part)

Topic: Retail_Trading_Status (Cryptocurrency)

1. Current Status: Allowed-Regulated

2. Narrative Explanation:

Retail cryptocurrency trading, encompassing the buying, selling, and holding of cryptocurrencies by individual citizens and residents, is permitted in Saint Martin (French part). The regulatory status is classified as Allowed-Regulated because Saint Martin, as an overseas collectivity of France, falls under the French and, consequently, the European Union's legal and regulatory framework for financial activities, including those involving crypto-assets.

  • Governing Framework: French national laws and applicable EU regulations govern financial markets and services in Saint Martin. The primary French authorities responsible for overseeing these activities are the Autorité des Marchés Financiers (AMF) and the Autorité de Contrôle Prudentiel et de Résolution (ACPR).
  • French National Regulation (PACTE Law): France established a domestic regulatory framework for crypto-assets through the PACTE Act (Plan d'Action pour la Croissance et la Transformation des Entreprises) in 2019. This law introduced the status of Digital Asset Service Providers (DASPs, or Prestataires de Services sur Actifs Numériques - PSANs in French).
    • Registration with the AMF is mandatory for firms providing specific services, including crypto-to-fiat exchange and digital asset custody.
    • An optional, more stringent licensing regime is also available.
    • All registered and licensed DASPs/PSANs must comply with robust Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) requirements, including Know Your Customer (KYC) procedures. These obligations align with the EU's Anti-Money Laundering Directives (AMLD).
  • EU Regulation (MiCA): The European Union's Markets in Crypto-Assets (MiCA) Regulation creates a harmonized framework across all EU member states, including France and its territories like Saint Martin.
    • MiCA entered into force in June 2023, with provisions for stablecoins applying from June 30, 2024, and the remaining regulations applying from December 30, 2024.
    • MiCA mandates authorization for Crypto-Asset Service Providers (CASPs) operating within the EU, establishing requirements for consumer protection, market integrity, prudential safeguards (like capital requirements), governance, and AML/CFT compliance.
    • Existing French DASPs/PSANs registered before December 30, 2024, benefit from a transitional period until July 1, 2026, to obtain MiCA authorization, during which they can continue operating in France under the national regime.
  • Retail Investor Implications: Individuals in Saint Martin (French part) can legally buy, sell, and hold cryptocurrencies. However, when they interact with exchanges or other service providers (CASPs/DASPs), these platforms must adhere to the prevailing French/EU regulations. This primarily means users will be subject to KYC verification processes (identity checks) and transaction monitoring as part of the platforms' AML/CFT obligations. The French framework, reinforced by MiCA and the revised Transfer of Funds Regulation (TFR), mandates traceability for crypto transactions.
  • Regulatory Oversight: The AMF and ACPR oversee the market, issue registrations/licenses, enforce compliance, and publish warnings about the risks associated with crypto-assets, particularly those offered by unregistered entities.

In summary, while individuals are free to engage with cryptocurrencies, the environment is regulated. Service providers targeting or operating within Saint Martin (French part) must comply with French registration/licensing requirements (transitioning to MiCA authorization) and stringent AML/KYC rules derived from French and EU law.

3. Relevant Text Excerpts:

  • On the applicability of French/EU Law: "Saint Martin (French part) is a territorial collectivity of France... Saint Martin, as a territorial collectivity of France, is subject to French laws aimed at combating corruption..." (KnowYourCountry). While this quote focuses on anti-corruption, it establishes the principle of French law applying. The broader financial regulatory framework follows this principle.
  • On French DASP/PSAN Regulation: "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)... Digital assets service providers (DASP), so-called Prestataire de service sur actifs numériques or PSAN in French..." (Adan). "In France, the registration and regulation of PSANs is overseen by the Autorité des marchés financiers (AMF) and the Autorité de contrôle prudentiel et de résolution (ACPR). The aim of this supervision is to ensure that service providers comply with anti-money laundering and anti-terrorist financing standards." (Banque Delubac & Cie).
  • On Legality for Individuals & AML/KYC: "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." (Notabene). "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..." (Notabene). "The new crypto transaction limit for KYC checks is set as €0, instead of the previous €1000 limit. This has effectively banned anonymity on the French crypto market, as even small crypto transactions must be accompanied by KYC." (Sumsub, referring to 2021 updates to French rules).
  • On MiCA Regulation and Transition: "The EU's Markets in Crypto-Assets (MiCA) regulation, effective December 30, 2024, mandates that all crypto-asset service providers (ASPs / PSAN) in France obtain authorization from the Autorité des Marchés Financiers (AMF) to continue operations. France has established an 18-month transitional period, allowing existing CASPs to operate under current regulations while seeking MiCA authorization until June 30, 2026." (Scorechain). "From 30 December 2024, this harmonised European framework will replace the national frameworks in place, and will regulate: The public offer and admission to trading of tokens; The provision of crypto-asset services by service providers; The prevention of market abuse in crypto-assets." (AMF France).
  • On MiCA's AML/KYC Integration: "The introduction of MiCA contributes to the fight against money laundering, as compliance with the EU 4th Money Laundering Directive (4MLD) is one of the authorization requirements... crypto-asset service providers will have to conduct Know Your Customer (KYC) checks on all their clients..." (Capgemini).

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