Martinique
Retail_Trading_Status
- Analysis ID
- #725
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- 2025-12-12 04:51
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Executive Summary
Retail cryptocurrency trading is legally permitted and regulated in Martinique, which falls under the jurisdiction of French financial laws and EU regulations. As an Overseas Department of France (DROM), Martinique enforces the 'PACTE Law' framework, requiring Digital Asset Service Providers (DASPs/PSANs) to register with the Autorité des Marchés Financiers (AMF). Residents are subject to the French tax regime, including the 30% Flat Tax (PFU) on capital gains, though specific local income tax abatements may apply.
Key Pillars
Autorité des Marchés Financiers (AMF) - Primary securities regulator responsible for DASP registration and market supervision
Autorité de Contrôle Prudentiel et de Résolution (ACPR) - Banking and insurance supervisor overseeing AML/CFT compliance
Institut d'Émission des Départements d'Outre-Mer (IEDOM) - Acts as the central bank branch, relaying Banque de France policies and warnings
Mandatory DASP (PSAN) Registration - Custodians and fiat-to-crypto exchanges must register with the AMF
EU MiCA Regulation - Directly applicable framework replacing national rules over a transition period
Landmark Laws
PACTE Law (Action Plan for Business Growth and Transformation) (Law No. 2019-486) - Enacted: 2019-05-22
- Established the legal framework for digital assets in France (and its overseas territories), creating the status of Digital Asset Service Providers (PSAN) and introducing an optional visa for ICOs.
- Source
Markets in Crypto-Assets (MiCA) Regulation (Regulation (EU) 2023/1114) - Enacted: 2023-05-31
- Comprehensive EU-wide regulation governing issuance and trading of crypto-assets, fully applicable in Martinique as an EU Outermost Region.
- Source
Monetary and Financial Code (Code monétaire et financier) (Article L54-10-1 et seq.) - Enacted: 2019-05-22
- Codifies the definitions of digital assets and the registration/licensing requirements for service providers operating in French territory.
- Source
Considerations
Taxation: Capital gains are generally subject to the 30% Flat Tax (PFU), comprising 12.8% income tax and 17.2% social contributions.
Local Tax Abatement: Residents of Martinique benefit from a 30% abatement on income tax (capped at €2,450), which may effectively reduce the income tax portion of the crypto tax burden compared to mainland France.
Exemption Threshold: Crypto-to-fiat gains under €305 per year are tax-exempt.
Crypto-to-Crypto: Exchanges between cryptocurrencies are not taxable events.
EU Status: As an Outermost Region (OMR), EU rules apply fully, meaning MiCA-licensed entities from other EU states can passport services to Martinique.
Notes
Traders in Martinique should ensure they use platforms registered with the AMF to ensure legal recourse in case of disputes. The transition to MiCA in 2024-2025 will further standardize rules.
Remaining Uncertainties
- The precise interaction between the 30% DOM income tax abatement and the 12.8% income tax portion of the Flat Tax (PFU) for crypto gains can be subject to interpretation by local tax offices.
- Availability of physical crypto exchange counters in Martinique is limited compared to mainland France.
Detailed Explanation
Detailed Explanation
Retail cryptocurrency trading is legally permitted and regulated in Martinique. As an Overseas Department of France (DROM) and an EU Outermost Region, the jurisdiction falls under French and European Union financial laws. The primary regulatory framework is established by the French PACTE Law (Law No. 2019-486), enacted on May 22, 2019, which created the legal status of Digital Asset Service Providers (DASPs/PSANs) and introduced an optional visa for Initial Coin Offerings (ICOs). This law is codified in the Monetary and Financial Code (Article L54-10-1 et seq.). Furthermore, the EU-wide Markets in Crypto-Assets (MiCA) Regulation (Regulation (EU) 2023/1114), enacted on May 31, 2023, is directly applicable and will replace national rules over a transition period starting in 2024-2025, ensuring a standardized regulatory environment across the EU, including Martinique. Key regulatory bodies oversee this framework. The Autorité des Marchés Financiers (AMF) acts as the primary securities regulator, responsible for DASP registration and market supervision. The Autorité de Contrôle Prudentiel et de Résolution (ACPR) supervises Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) compliance. The Institut d’Émission des Départements d’Outre-Mer (IEDOM) functions as the local branch of the central bank, relaying policies and warnings from the Banque de France. A core compliance requirement is mandatory registration with the AMF for Digital Asset Service Providers offering custody or fiat-to-crypto exchange services. For residents, the French tax regime applies, where capital gains are generally subject to a 30% Flat Tax (PFU), comprising 12.8% income tax and 17.2% social contributions. However, residents of Martinique benefit from a specific local income tax abatement of 30%, capped at €2,450, which may effectively reduce the income tax portion of their crypto tax burden compared to mainland France. Notable tax rules include an exemption for crypto-to-fiat gains under €305 per year and the non-taxability of crypto-to-crypto exchanges. As an EU Outermost Region, MiCA-licensed entities from other EU member states can passport their services to Martinique, increasing market access for residents. Traders are advised to use platforms registered with the AMF to ensure legal recourse.
Summary Points
I. Regulatory Status
* Retail cryptocurrency trading is Allowed-Regulated.
* Martinique, as a French Overseas Department (DROM) and EU Outermost Region (OMR), is subject to French national law and directly applicable EU regulations.
II. Key Regulatory Bodies
* Autorité des Marchés Financiers (AMF): The primary securities regulator responsible for DASP (PSAN) registration and market supervision.
* Autorité de Contrôle Prudentiel et de Résolution (ACPR): The banking and insurance supervisor overseeing AML/CFT compliance for crypto service providers.
* Institut d’Émission des Départements d’Outre-Mer (IEDOM): Acts as the central bank branch, relaying Banque de France policies and issuing financial warnings.
III. Important Legislation
* PACTE Law (Law No. 2019-486): Enacted on May 22, 2019, this French law established the legal framework for digital assets, creating the status of Digital Asset Service Providers (PSAN) and introducing an optional visa for ICOs. Its provisions are codified in the Monetary and Financial Code (Article L54-10-1 et seq.).
* Markets in Crypto-Assets (MiCA) Regulation (Regulation (EU) 2023/1114): Enacted on May 31, 2023, this comprehensive EU-wide regulation governs the issuance and trading of crypto-assets and is fully applicable in Martinique. It will replace national rules over a transition period (2024-2025).
IV. Compliance Requirements
* Mandatory DASP Registration: Custodians and fiat-to-crypto exchanges must register with the AMF.
* Taxation: Residents are subject to the French tax regime.
* Capital gains are generally subject to the 30% Flat Tax (PFU) (12.8% income tax + 17.2% social contributions).
* A local tax abatement of 30% on income tax (capped at €2,450) applies for residents of Martinique, potentially reducing the effective tax rate.
* Crypto-to-fiat gains under €305 per year are tax-exempt.
* Exchanges between cryptocurrencies (crypto-to-crypto) are not taxable events.
* AML/CFT: Providers must comply with AML/CFT rules under ACPR supervision.
V. Notable Restrictions or Limitations
* There are no specific bans on retail trading or holding of cryptocurrencies.
* The primary restriction is the mandatory use of registered service providers for certain activities (custody, fiat on/off-ramps) to ensure consumer protection and legal recourse.
VI. Recent Developments or Notes
* The transition to MiCA is underway (2024-2025), which will further standardize rules and allow for the passporting of services from MiCA-licensed entities in other EU states directly to Martinique.
* Traders are advised to use platforms registered with the AMF for security and legal protection.
* The regulatory framework is evolving, with EU MiCA regulations set to become the dominant rulebook.
Full Analysis Report
Full Analysis Report
Martinique, as an overseas department and region of France (DROM), is fully integrated into the French legal and financial system. Consequently, the regulatory status of cryptocurrency trading is 'Allowed-Regulated', mirroring the framework established in mainland France. The primary legislation governing this sector is the PACTE Law of May 2019, which introduced the Digital Asset Service Provider (DASP or PSAN) regime. Under this law, any entity providing custody services or buying/selling digital assets for legal tender in Martinique must be registered with the Autorité des Marchés Financiers (AMF). This ensures a high level of consumer protection and AML/CFT compliance.
The regulatory oversight is dual-pronged. The AMF handles market conduct and registration, while the Autorité de Contrôle Prudentiel et de Résolution (ACPR) supervises anti-money laundering obligations. The Institut d'Émission des Départements d'Outre-Mer (IEDOM) acts as the local arm of the central bank (Banque de France), primarily focusing on monetary stability and issuing warnings to the public regarding high-risk financial products, including unregulated crypto assets. There are no specific local bans or restrictions that differ from mainland France; residents have full access to AMF-registered platforms like Binance France, Coinhouse, and others.
Taxation is a key consideration for retail traders in Martinique. The standard French tax regime applies, meaning crypto capital gains are subject to the Prélèvement Forfaitaire Unique (PFU) or 'Flat Tax' of 30%. This consists of a 12.8% income tax and 17.2% in social contributions (CSG/CRDS). However, Martinique residents benefit from a specific fiscal advantage: a 30% abatement on income tax (capped at €2,450). While this abatement applies to the global income tax calculation, the specific application to the PFU component can be complex, and traders often consult local tax advisers to optimize their declarations. Gains below €305 per year remain exempt.
Looking ahead, the regulatory landscape is transitioning toward the European Union's Markets in Crypto-Assets (MiCA) regulation. As Martinique is an Outermost Region of the EU, MiCA applies directly. This transition will see the current French PSAN regime evolve into the EU-wide CASP (Crypto-Asset Service Provider) license. This will likely increase the number of available compliant platforms for Martinique residents, as entities licensed in other EU jurisdictions will be able to passport their services to the island without separate French registration.
Martinique, as an overseas department and region of France (DROM), is fully integrated into the French legal and financial system. Consequently, the regulatory status of cryptocurrency trading is 'Allowed-Regulated', mirroring the framework established in mainland France. The primary legislation governing this sector is the PACTE Law of May 2019, which introduced the Digital Asset Service Provider (DASP or PSAN) regime. Under this law, any entity providing custody services or buying/selling digital assets for legal tender in Martinique must be registered with the Autorité des Marchés Financiers (AMF). This ensures a high level of consumer protection and AML/CFT compliance. The regulatory oversight is dual-pronged. The AMF handles market conduct and registration, while the Autorité de Contrôle Prudentiel et de Résolution (ACPR) supervises anti-money laundering obligations. The Institut d'Émission des Départements d'Outre-Mer (IEDOM) acts as the local arm of the central bank (Banque de France), primarily focusing on monetary stability and issuing warnings to the public regarding high-risk financial products, including unregulated crypto assets. There are no specific local bans or restrictions that differ from mainland France; residents have full access to AMF-registered platforms like Binance France, Coinhouse, and others. Taxation is a key consideration for retail traders in Martinique. The standard French tax regime applies, meaning crypto capital gains are subject to the Prélèvement Forfaitaire Unique (PFU) or 'Flat Tax' of 30%. This consists of a 12.8% income tax and 17.2% in social contributions (CSG/CRDS). However, Martinique residents benefit from a specific fiscal advantage: a 30% abatement on income tax (capped at €2,450). While this abatement applies to the global income tax calculation, the specific application to the PFU component can be complex, and traders often consult local tax advisers to optimize their declarations. Gains below €305 per year remain exempt. Looking ahead, the regulatory landscape is transitioning toward the European Union's Markets in Crypto-Assets (MiCA) regulation. As Martinique is an Outermost Region of the EU, MiCA applies directly. This transition will see the current French PSAN regime evolve into the EU-wide CASP (Crypto-Asset Service Provider) license. This will likely increase the number of available compliant platforms for Martinique residents, as entities licensed in other EU jurisdictions will be able to passport their services to the island without separate French registration.
Source Evidence
Primary and secondary sources cited in this analysis
"The PACTE Law of 22 May 2019 has created a framework for digital asset service providers (DASPs) in France."
"L'IEDOM exerce les missions de banque centrale dans les cinq départements d'outre-mer (DOM)."
"Les prestataires de services sur actifs numériques sont les prestataires qui fournissent l'un des services mentionnés à l'article L. 54-10-2."
"Les plus-values réalisées par les particuliers... sont soumises au Prélèvement Forfaitaire Unique (PFU) au taux global de 30%."
"Les résidents fiscaux des DOM bénéficient d'une réfaction de l'impôt sur le revenu... Martinique : 30% dans la limite de 2 450 €."
Web Sources (4)
Sources discovered via web search grounding
Search queries used (7)
- status of crypto trading in Martinique
- AMF France jurisdiction overseas territories crypto
- IEDOM Martinique crypto assets warning
- Martinique cryptocurrency regulation French law application
- taux CSG CRDS Martinique revenus patrimoine
- impôt plus-values crypto Martinique
- fiscalité cryptomonnaies Martinique vs France métropolitaine
https://cms.law/en/int/expert-guides/cms-expert-guide-to-crypto-regulation/france
https://www.malte-conseils.com/fiscalite-des-cryptomonnaies-en-france-guide-complet-et-cas-pratique/
https://www.waltio.com/fr/tout-savoir-sur-la-fiscalite-crypto/
https://www.economie.gouv.fr/cedef/fiches-pratiques/le-regime-fiscal-des-cryptomonnaies