French Polynesia
Retail_Trading_Status
- Analysis ID
- #663
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- 2025-12-12 04:18
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Executive Summary
Retail cryptocurrency trading is legal and regulated in French Polynesia, primarily falling under the extension of France's regulatory framework. The French 'PACTE Law' regime for Digital Asset Service Providers (PSAN) applies, meaning intermediaries serving the territory must be registered with the French Financial Markets Authority (AMF). The Institut d'émission d'outre-mer (IEOM) acts as the local central bank authority, actively warning consumers to use only AMF-whitelisted platforms. Notably, unlike metropolitan France, individual investors in French Polynesia currently benefit from a lack of personal capital gains tax on crypto assets due to the territory's autonomous fiscal status.
Key Pillars
Autorité des marchés financiers (AMF): Primary regulator responsible for registering and licensing Digital Asset Service Providers (PSAN/DASP) authorized to operate in the territory.
Institut d'émission d'outre-mer (IEOM): Acts as the central bank for the Pacific Franc (XPF) zone; issues consumer warnings and monitors financial stability.
Autorité de contrôle prudentiel et de résolution (ACPR): Supervises Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) compliance for financial institutions.
Assembly of French Polynesia: Holds competency over local fiscal matters and certain adaptations of French law, recently expressing a desire to adapt rather than automatically adopt new EU regulations like MiCA.
Landmark Laws
Loi PACTE (Action Plan for Business Growth and Transformation) (Loi n° 2019-486) - Enacted: 2019-05-22
- Established the PSAN (Prestataire de Services sur Actifs Numériques) regime, requiring mandatory registration for crypto-fiat exchange and custody services. These provisions extend to French Polynesia.
- Source
Monetary and Financial Code (Overseas Application) (Article L711-1 et seq.)
- Defines the application of French financial laws in overseas collectivities, extending the AMF's supervisory powers over digital assets to French Polynesia.
- Source
Considerations
Tax Advantage: Unlike mainland France (which has a 30% flat tax), French Polynesia has no general personal income tax on capital gains for individuals, making crypto trading effectively tax-free for retail investors not trading professionally.
Currency: The official currency is the CFP Franc (XPF), pegged to the Euro. Crypto is not legal tender.
MiCA Implementation: In October 2024, the Assembly of French Polynesia issued a negative opinion on the automatic extension of the EU's MiCA regulation, signaling a desire for a locally adapted framework rather than a direct copy-paste of EU rules.
Local Industry: While the French PSAN regime applies, no local Polynesian companies have registered yet due to high compliance costs; the market is served by French-registered entities.
Notes
The 'Gray-Zone' classification was considered due to the Assembly's rejection of the MiCA extension draft. However, 'Allowed-Regulated' is more accurate because the existing French PSAN regime remains legally binding and enforced by the IEOM and AMF today. The rejection relates to future EU rules, not the current legality.
Remaining Uncertainties
- The exact timeline and form of MiCA's eventual implementation in French Polynesia following the Assembly's initial rejection of automatic extension.
- Whether the local government will introduce a specific tax framework for crypto assets in the future to close the current capital gains exemption gap.
Detailed Explanation
Detailed Explanation
Retail cryptocurrency trading is legal and regulated in French Polynesia, operating under an extension of France's financial regulatory framework. The primary legal basis for this regulation is the French PACTE Law (Loi n° 2019-486), enacted on May 22, 2019, which established the mandatory registration regime for Digital Asset Service Providers (PSAN). This law, along with the provisions of the Monetary and Financial Code (Article L711-1 et seq.), explicitly extends the supervisory powers of the French Financial Markets Authority (AMF) to French Polynesia. Consequently, any intermediary offering services such as crypto-to-fiat exchange or digital asset custody to residents must be registered with the AMF. The Institut d'émission d'outre-mer (IEOM), which acts as the central bank for the Pacific Franc (XPF) zone, actively enforces this requirement by consistently warning consumers to use only platforms that appear on the AMF's official whitelist. The Autorité de contrôle prudentiel et de résolution (ACPR) also plays a crucial role by supervising Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) compliance for financial institutions operating in the territory. A significant advantage for individual investors in French Polynesia is the absence of a general personal capital gains tax on crypto assets, a result of the territory's autonomous fiscal status that distinguishes it from metropolitan France, where a flat tax applies. This creates a tax-free environment for retail investors who are not considered professional traders. However, it is important to note that while the French regulatory framework is currently in force, the local Assembly of French Polynesia has expressed a desire for greater autonomy. In a notable recent development from October 2024, the Assembly issued a negative opinion on the automatic extension of the European Union's Markets in Crypto-Assets (MiCA) regulation, signaling an intent to develop a locally adapted framework in the future rather than directly adopting EU rules.
Summary Points
I. Regulatory Status
* Retail cryptocurrency trading is Allowed-Regulated.
* The legal framework is an extension of French national law, primarily the PACTE Law.
II. Key Regulatory Bodies
* Autorité des marchés financiers (AMF): The primary regulator responsible for registering and licensing Digital Asset Service Providers (PSAN/DASP) authorized to operate.
* Institut d'émission d'outre-mer (IEOM): Acts as the local central bank for the CFP Franc (XPF); issues consumer warnings and monitors financial stability, actively directing users to AMF-whitelisted platforms.
* Autorité de contrôle prudentiel et de résolution (ACPR): Supervises Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) compliance.
* Assembly of French Polynesia: Holds competency over local fiscal matters and has recently asserted a role in adapting, rather than automatically adopting, new financial regulations.
III. Important Legislation
* Loi PACTE (Loi n° 2019-486): Enacted on 2019-05-22, this law established the mandatory PSAN regime for crypto-fiat exchange and custody services, and its provisions extend to French Polynesia.
* Monetary and Financial Code (Article L711-1 et seq.): Defines the application of French financial laws in overseas collectivities, legally extending the AMF's supervisory powers over digital assets.
IV. Compliance Requirements
* Crypto service providers must be registered as a PSAN with the AMF to operate legally.
* Entities must comply with AML/CFT regulations as supervised by the ACPR.
V. Notable Restrictions or Limitations
* Cryptocurrency is not legal tender; the official currency is the Euro-pegged CFP Franc (XPF).
* The market is currently served by French-registered entities, as no local Polynesian companies have successfully registered as a PSAN due to high compliance costs.
VI. Recent Developments or Notes
* Tax Advantage: A major consideration is that French Polynesia has no general personal income tax on capital gains for individuals, making retail crypto trading effectively tax-free, unlike in metropolitan France.
* MiCA Implementation: In October 2024, the Assembly of French Polynesia issued a negative opinion on the automatic extension of the EU's MiCA regulation, indicating a future push for a locally tailored framework instead of direct EU rule adoption.
Full Analysis Report
Full Analysis Report
The regulatory status of cryptocurrency in French Polynesia is best classified as Allowed-Regulated. As an overseas collectivity of France, French Polynesia inherits the core financial regulatory framework of the French Republic, specifically the 'PACTE Law' of 2019. This law established the status of Digital Asset Service Providers (PSAN), requiring mandatory registration with the Autorité des marchés financiers (AMF) for any entity providing custody of digital assets or purchase/sale of digital assets for legal tender. The Institut d'émission d'outre-mer (IEOM), which serves as the central bank for the French Pacific territories, has explicitly clarified that this regime applies locally. Consequently, only platforms registered on the AMF's 'white list' are legally authorized to market their services to residents of French Polynesia.
Despite the rigorous legal framework, the practical landscape differs significantly from metropolitan France due to the territory's fiscal autonomy. In French Polynesia, there is no general personal income tax (Impôt sur le Revenu) for individuals on capital gains. This creates a unique environment where the activity is strictly regulated for intermediaries (high barrier to entry, strict AML/KYC) but highly attractive for individual retail investors, who are effectively exempt from capital gains tax on their trading profits, provided they are not classified as professional traders. This contrasts sharply with the 30% flat tax applied in mainland France.
The relationship with upcoming European regulations remains dynamic. While the French PSAN regime is currently in force, the transition to the European Markets in Crypto-Assets (MiCA) regulation has faced local political friction. In October 2024, the Assembly of French Polynesia issued a negative opinion regarding the automatic extension of MiCA and new AML ordinances. This refusal was not a rejection of regulation itself but a demand for a legal framework better adapted to the local economic reality, arguing that the complex metropolitan codes are difficult for local actors to navigate. As a result, while the baseline French rules apply, future EU-driven updates may see delayed or modified implementation in the territory.
Enforcement is active but primarily focused on consumer protection and AML. The IEOM regularly issues press releases warning the public against 'crypto-assets' volatility and the risks of using unregulated platforms. They emphasize that cryptocurrencies are not legal tender—a status reserved for the CFP Franc (XPF)—and that investors have no recourse if they use platforms not registered with the AMF. To date, no local Polynesian companies have successfully obtained PSAN registration, largely due to the prohibitive costs of compliance (estimated at hundreds of thousands of Euros), leaving the market dominated by metropolitan French or international platforms that have secured AMF clearance.
The regulatory status of cryptocurrency in French Polynesia is best classified as **Allowed-Regulated**. As an overseas collectivity of France, French Polynesia inherits the core financial regulatory framework of the French Republic, specifically the 'PACTE Law' of 2019. This law established the status of Digital Asset Service Providers (PSAN), requiring mandatory registration with the Autorité des marchés financiers (AMF) for any entity providing custody of digital assets or purchase/sale of digital assets for legal tender. The Institut d'émission d'outre-mer (IEOM), which serves as the central bank for the French Pacific territories, has explicitly clarified that this regime applies locally. Consequently, only platforms registered on the AMF's 'white list' are legally authorized to market their services to residents of French Polynesia. Despite the rigorous legal framework, the practical landscape differs significantly from metropolitan France due to the territory's fiscal autonomy. In French Polynesia, there is no general personal income tax (Impôt sur le Revenu) for individuals on capital gains. This creates a unique environment where the activity is strictly regulated for intermediaries (high barrier to entry, strict AML/KYC) but highly attractive for individual retail investors, who are effectively exempt from capital gains tax on their trading profits, provided they are not classified as professional traders. This contrasts sharply with the 30% flat tax applied in mainland France. The relationship with upcoming European regulations remains dynamic. While the French PSAN regime is currently in force, the transition to the European Markets in Crypto-Assets (MiCA) regulation has faced local political friction. In October 2024, the Assembly of French Polynesia issued a negative opinion regarding the automatic extension of MiCA and new AML ordinances. This refusal was not a rejection of regulation itself but a demand for a legal framework better adapted to the local economic reality, arguing that the complex metropolitan codes are difficult for local actors to navigate. As a result, while the baseline French rules apply, future EU-driven updates may see delayed or modified implementation in the territory. Enforcement is active but primarily focused on consumer protection and AML. The IEOM regularly issues press releases warning the public against 'crypto-assets' volatility and the risks of using unregulated platforms. They emphasize that cryptocurrencies are not legal tender—a status reserved for the CFP Franc (XPF)—and that investors have no recourse if they use platforms not registered with the AMF. To date, no local Polynesian companies have successfully obtained PSAN registration, largely due to the prohibitive costs of compliance (estimated at hundreds of thousands of Euros), leaving the market dominated by metropolitan French or international platforms that have secured AMF clearance.
Source Evidence
Primary and secondary sources cited in this analysis
"Seuls les prestataires implantés en France ont le droit d’exercer leur activité dans les collectivités françaises du Pacifique."
"Mandatory registration for the services of custody of digital assets... and purchase/sale of digital assets for legal tender."
"La Polynésie française est compétente dans toutes les matières qui ne sont pas dévolues à l'État."
"En PF, le statut PSAN s’applique au même titre qu’en France métropolitaine."
"The Assembly of French Polynesia clearly stated that it did not wish to apply these texts without prior local reflection."
Web Sources (2)
Sources discovered via web search grounding
Search queries used (8)
- cryptocurrency regulation French Polynesia
- statut juridique crypto monnaie Polynésie française
- IEOM actifs numériques Polynésie française
- taxation crypto currency French Polynesia
- application loi PACTE Polynésie française crypto
- taxation capital gains individuals French Polynesia crypto
- impôt sur les plus-values mobilières particuliers Polynésie française
- fiscalité crypto monnaie Polynésie française particuliers
https://www.amf-france.org/fr/actualites-publications/actualites/vers-un-nouveau-regime-pour-les-crypto-actifs-en-france
https://armenian-lawyer.com/business-immigration/french-polynesia-tax-haven-paradise-with-european-legal-protection/