France

Retail_Trading_Status

Allowed-Regulated High Confidence

Analysis ID: #660
Version: Latest
Created: 2025-12-12 04:17
Run: 031ab387...
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Workflow Stage: Step 1

Executive Summary

Retail cryptocurrency trading in France is legal and comprehensively regulated under a dual framework transitioning from the national PACTE Law to the EU-wide MiCA regulation. The Autorité des Marchés Financiers (AMF) and the Autorité de Contrôle Prudentiel et de Résolution (ACPR) oversee the sector, requiring Digital Asset Service Providers (DASPs/PSANs) to register and comply with strict AML/CFT standards. As of late 2025, France has fully integrated MiCA provisions, mandating full CASP licensing for new entrants while granting a transition period until July 2026 for legacy registered entities. Retail investors benefit from a clear tax regime (30% flat tax) and recently expanded access to crypto-linked exchange-traded products.

Key Pillars

Primary Regulator: Autorité des Marchés Financiers (AMF) for conduct and registration/licensing.
Prudential Supervisor: Autorité de Contrôle Prudentiel et de Résolution (ACPR) for AML/CFT and capital requirements.
Licensing Regime: Transitioning from the PACTE Law's PSAN (Prestataire de Services sur Actifs Numériques) registration to MiCA's CASP (Crypto-Asset Service Provider) authorization.
AML/KYC: Mandatory compliance with EU Anti-Money Laundering Directives; strict identity verification required for all fiat-crypto gateways.
Retail Access: Direct trading allowed; marketing of crypto derivatives and ETNs to retail investors was liberalized in December 2025.

Landmark Laws

Markets in Crypto-Assets Regulation (MiCA) (Regulation (EU) 2023/1114) - Enacted: 2023-05-31
- EU-wide framework fully applicable in France as of December 30, 2024. Replaces the national regime for new entrants, establishing uniform rules for issuance, custody, and trading of crypto-assets.
- Source

PACTE Law (Action Plan for Business Growth and Transformation) (Law No. 2019-486) - Enacted: 2019-05-22
- Established the original French regulatory framework for digital assets, creating the PSAN status with mandatory registration for custody/fiat services and optional licensing.
- Source

DDADUE Law (Law No. 2023-171) - Enacted: 2023-03-09
- Adapted French law to EU standards, introducing a mandatory 'enhanced registration' for new PSANs starting January 2024 to bridge the gap before MiCA's full implementation.
- Source

Considerations

Taxation: Capital gains are subject to a Single Flat-Rate Withholding Tax (PFU) of 30% (12.8% tax + 17.2% social contributions). Crypto-to-crypto trades are tax-exempt until converted to fiat.
Wealth Tax Proposal: As of late 2025, a proposal to include crypto assets in the 'unproductive wealth' tax bracket is under debate for the 2026 budget, potentially affecting high-net-worth holders.
Transition Period: Entities registered as PSANs before December 30, 2024, benefit from a grandfathering clause allowing them to operate without a full MiCA license until July 1, 2026.
Derivatives: While spot trading is open, complex derivatives were historically restricted; however, rules for crypto ETNs were eased in December 2025 to align with UK standards.

Notes

France is widely considered a 'Tier 1' jurisdiction for crypto regulation. The 'grandfathering' period creates a temporary dual regime where legacy players operate under PACTE rules while new entrants face full MiCA compliance immediately. This distinction is vital for compliance officers assessing counterparty risk.

Remaining Uncertainties

Final outcome of the 'unproductive wealth' tax proposal in the Senate for the 2026 budget.
Specific operational bottlenecks for legacy PSANs applying for full MiCA CASP authorization before the July 2026 deadline.

Detailed Explanation

Retail cryptocurrency trading in France is legal and comprehensively regulated under a dual framework that is transitioning from the national PACTE Law to the EU-wide MiCA regulation. The regulatory landscape is overseen by two primary authorities: the Autorité des Marchés Financiers (AMF), which handles conduct and registration/licensing, and the Autorité de Contrôle Prudentiel et de Résolution (ACPR), which supervises prudential matters including AML/CFT standards and capital requirements. This framework requires Digital Asset Service Providers (DASPs/PSANs) to register and comply with strict anti-money laundering and counter-terrorist financing standards. As of late 2025, France has fully integrated the provisions of the Markets in Crypto-Assets Regulation (MiCA), which was enacted on May 31, 2023, and became fully applicable across the EU, including France, on December 30, 2024. This integration mandates that new entrants obtain full Crypto-Asset Service Provider (CASP) licensing under MiCA, while a transition period until July 1, 2026, is granted for legacy entities that were registered under the previous national regime. The foundational French law was the PACTE Law (Law No. 2019-486), enacted on May 22, 2019, which established the original regulatory framework for digital assets and created the PSAN status. This was later adapted by the DDADUE Law (Law No. 2023-171), enacted on March 9, 2023, which introduced a mandatory 'enhanced registration' for new PSANs to bridge the regulatory gap before MiCA's full implementation. Retail investors benefit from a clear tax regime where capital gains are subject to a flat tax of 30%, and access to crypto-linked exchange-traded products was expanded in December 2025. A significant consideration is a proposal to include crypto assets in a 'unproductive wealth' tax bracket as part of the 2026 budget debate, which could potentially affect high-net-worth holders.

Summary Points

I. Regulatory Status
* Retail cryptocurrency trading is Allowed-Regulated.
* Operates under a dual framework transitioning from the national PACTE Law to the EU-wide MiCA regulation.
* As of late 2025, MiCA provisions are fully integrated, creating a transitional regime for existing entities.

II. Key Regulatory Bodies
* Autorité des Marchés Financiers (AMF): Primary regulator for conduct and registration/licensing.
* Autorité de Contrôle Prudentiel et de Résolution (ACPR): Prudential supervisor for AML/CFT and capital requirements.

III. Important Legislation
* Markets in Crypto-Assets Regulation (MiCA) (Regulation (EU) 2023/1114): Enacted May 31, 2023. EU-wide framework fully applicable as of December 30, 2024. Establishes uniform rules for issuance, custody, and trading of crypto-assets.
* PACTE Law (Action Plan for Business Growth and Transformation) (Law No. 2019-486): Enacted May 22, 2019. Established the original French framework, creating the PSAN status with mandatory registration for custody/fiat services.
* DDADUE Law (Law No. 2023-171): Enacted March 9, 2023. Adapted French law to EU standards, introducing a mandatory 'enhanced registration' for new PSANs from January 2024.

IV. Compliance Requirements
* Licensing Regime: Transitioning from PSAN registration to MiCA's CASP authorization. New entrants require full MiCA licensing.
* AML/KYC: Mandatory compliance with EU Anti-Money Laundering Directives; strict identity verification is required for all fiat-crypto gateways.
* Taxation: Capital gains are subject to a Single Flat-Rate Withholding Tax (PFU) of 30% (12.8% tax + 17.2% social contributions). Crypto-to-crypto trades are tax-exempt until conversion to fiat.

V. Notable Restrictions or Limitations
* Transition Period: Entities registered as PSANs before December 30, 2024, benefit from a grandfathering clause, allowing operation without a full MiCA license until July 1, 2026.

VI. Recent Developments or Notes
* Wealth Tax Proposal: A proposal to include crypto assets in the 'unproductive wealth' tax bracket is under debate for the 2026 budget.
* Derivatives Access: Marketing of crypto derivatives and ETNs to retail investors was liberalized in December 2025.
* France is widely considered a 'Tier 1' jurisdiction for crypto regulation.

Full Analysis Report

France maintains one of the most sophisticated and clearly defined regulatory environments for cryptocurrency in the world, characterized by a 'regulation-first' approach that anticipated EU-wide standards. As of December 2025, the country is in a critical transition phase between its national legacy framework (PACTE Law) and the fully applicable European Markets in Crypto-Assets (MiCA) regulation. The primary regulator, the AMF, works alongside the ACPR to enforce a regime that permits retail trading while imposing rigorous consumer protection and anti-money laundering standards. Retail investors can freely buy, sell, and hold digital assets through registered platforms, which are publicly listed on the AMF's 'white list' of Digital Asset Service Providers (PSANs).

The regulatory landscape is defined by the transition from the PSAN status to the MiCA CASP license. Under the PACTE Law (2019), service providers offering custody or fiat-to-crypto exchange services were required to obtain 'registration' (mandatory for AML compliance) while 'licensing' (a higher standard) remained optional. The DDADUE Law (2023) tightened this by introducing 'enhanced registration' for new entrants in 2024. Now, with MiCA fully in force since December 30, 2024, all new crypto service providers must immediately obtain full CASP authorization. However, a 'grandfathering' clause allows firms registered under the old PACTE regime prior to late 2024 to continue operations until July 1, 2026, before they must fully migrate to the MiCA license.

For retail traders, the environment is permissive but strictly supervised. In a notable development in December 2025, the AMF updated its doctrine to allow the marketing of crypto-asset Exchange Traded Notes (ETNs) to retail investors, removing previous warning label requirements for eligible products. This move was designed to align French capital markets with competitors like the UK and meet growing retail demand for regulated exposure. Despite this liberalization, the AMF remains aggressive against unauthorized actors, regularly updating blacklists of websites offering illegal investment services and fining entities that fail to comply with promotional rules.

Taxation is a settled matter for most retail investors, though new proposals loom. Gains are taxed at a flat rate of 30% (Prélèvement Forfaitaire Unique), comprising income tax and social contributions. Crucially, exchanges between cryptocurrencies (e.g., Bitcoin to Ethereum) are tax-neutral events; taxation is only triggered upon conversion to fiat currency or the purchase of goods and services. A significant area of uncertainty in late 2025 is the proposed expansion of the wealth tax to include crypto assets as 'unproductive wealth,' a measure passed by the National Assembly in November 2025 but still pending final Senate approval for the 2026 budget.

The regulatory landscape is defined by the transition from the PSAN status to the MiCA CASP license. Under the PACTE Law (2019), service providers offering custody or fiat-to-crypto exchange services were required to obtain 'registration' (mandatory for AML compliance) while 'licensing' (a higher standard) remained optional. The DDADUE Law (2023) tightened this by introducing 'enhanced registration' for new entrants in 2024. Now, with MiCA fully in force since December 30, 2024, all *new* crypto service providers must immediately obtain full CASP authorization. However, a 'grandfathering' clause allows firms registered under the old PACTE regime prior to late 2024 to continue operations until July 1, 2026, before they must fully migrate to the MiCA license.

Source Evidence

Primary and secondary sources cited in this analysis

White list of Digital Asset Service Providers (DASPs) primary (regulator)

2025-12-12

"The file below lists the digital asset service providers (DASPs) registered with the AMF... pursuant to Article L. 54-10-3 of the Monetary and Financial Code."

Markets in crypto-assets: publication of the MiCA regulation primary (regulator)

2024-12-30

"From 30 December 2024, this harmonised European framework will replace the national frameworks... The date of 30 June 2026 will mark the end of the 18-month transitional period granted to digital asset service providers (DASPs)."

France Adjusts Policy on Retail Crypto Index ETNs primary (regulator)

2025-12-09

"The AMF adapted its doctrine to permit retail marketing of crypto-indexed ETNs, removing warning-label requirements for products that satisfy all eligibility conditions."

France Eases Retail Crypto Rules as Europe Unlocks Access secondary (news)

2025-12-09

"France's AMF decision to open retail access to regulated crypto ETNs... removing warning-label requirements for products that satisfy all eligibility conditions."

France moves to tax crypto as 'unproductive wealth' secondary (analysis)

2025-11-04

"Under the plan, individuals holding 'unproductive wealth' valued above €2 million would face a new 1% flat tax... The inclusion of digital assets has drawn criticism."