Réunion
Retail_Trading_Status
- Analysis ID
- #767
- Version
- Latest
- Created
- 2025-12-12 05:09
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- b31cfd25...
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- Step 1
Executive Summary
As an overseas department and region of France, Réunion is fully subject to French and European Union cryptocurrency regulations. Retail trading is legal and regulated under the French PACTE Law and the EU's Markets in Crypto-Assets (MiCA) regulation. The Autorité des marchés financiers (AMF) serves as the primary regulator, requiring digital asset service providers (DASPs) to register for anti-money laundering (AML) compliance and operational standards. The Institut d'émission des départements d'outre-mer (IEDOM) acts as the local central bank representative, issuing risk warnings but enforcing no separate local bans.
Key Pillars
Autorité des marchés financiers (AMF): Primary securities regulator responsible for registering and licensing Digital Asset Service Providers (DASPs/PSANs).
Autorité de contrôle prudentiel et de résolution (ACPR): Responsible for prudential supervision and AML/CFT compliance for crypto businesses.
Institut d'émission des départements d'outre-mer (IEDOM): Local central bank authority in Réunion, delegated by the Banque de France, which monitors financial stability and issues consumer warnings.
Mandatory DASP Registration: Custodians and fiat-to-crypto exchanges must register with the AMF; full licensing is optional but encouraged.
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 Provider (PSAN) and setting rules for Initial Coin Offerings (ICOs).
- Source
Markets in Crypto-Assets Regulation (MiCA) (Regulation (EU) 2023/1114) - Enacted: 2023-05-31
- Comprehensive EU-wide regulation replacing national frameworks, imposing strict governance, consumer protection, and reserve requirements on stablecoin issuers and CASPs. Fully applicable in Réunion as an EU Outermost Region.
- Source
Ordinance on the prevention of the use of the financial system for money laundering (Ordinance No. 2020-115) - Enacted: 2020-02-12
- Strengthened AML/CFT obligations for crypto-asset service providers, aligning French law with the EU's 5th Anti-Money Laundering Directive.
- Source
Considerations
Taxation: Capital gains from crypto trading are subject to a flat tax (Prélèvement Forfaitaire Unique - PFU) of 30% (12.8% income tax + 17.2% social contributions) for occasional traders.
Crypto-to-Crypto Exemption: Exchanges between cryptocurrencies are generally not taxable events; tax is triggered only upon conversion to fiat or purchase of goods/services.
EU Status: As an Outermost Region (OMR) of the EU, Réunion benefits from passporting rights for EU-licensed crypto companies under MiCA.
Banking Access: While legal, some local residents may face friction transferring funds to crypto exchanges due to traditional banking caution, though SEPA transfers to major EU exchanges are standard.
Notes
Réunion's status is legally identical to mainland France. Any reference to 'French Overseas Territories' in crypto regulation generally implies full applicability of French law for DROMs (Departments) like Réunion, unlike COM (Collectivities) which may have more legislative autonomy. The Euro is the official currency.
Remaining Uncertainties
- Specific local enforcement statistics for Réunion (e.g., number of local scams prosecuted) are not separately reported from national French statistics.
- The exact timeline for full transition from the French DASP regime to the EU MiCA CASP regime for existing local entities in 2025/2026.
Detailed Explanation
Detailed Explanation
Cryptocurrency activities in Réunion are allowed and regulated, with its legal status being fully integrated into the French and European Union regulatory framework. As an overseas department and region of France, Réunion is subject to the same comprehensive rules as mainland France. The primary regulatory framework is established by the French PACTE Law (Law No. 2019-486), enacted on 2019-05-22, which created the legal status of Digital Asset Service Provider (DASP or PSAN) and set rules for Initial Coin Offerings. This national framework is now being superseded by the EU-wide Markets in Crypto-Assets Regulation (MiCA) (Regulation (EU) 2023/1114), enacted on 2023-05-31, which imposes strict governance, consumer protection, and reserve requirements on crypto-asset service providers and stablecoin issuers. As an EU Outermost Region, MiCA is fully applicable in Réunion, granting crypto businesses passporting rights across the European Union. The regulatory landscape is further shaped by anti-money laundering rules, notably Ordinance No. 2020-115 from 2020-02-12, which strengthened AML/CFT obligations for service providers. The Autorité des marchés financiers (AMF) serves as the primary securities regulator, responsible for the mandatory registration of DASPs offering custody or fiat-to-crypto exchange services. The Autorité de contrôle prudentiel et de résolution (ACPR) is responsible for prudential supervision and anti-money laundering compliance. Locally, the Institut d’émission des départements d’outre-mer (IEDOM) acts as the representative of the Banque de France, monitoring financial stability and issuing consumer risk warnings, though it does not enforce separate local bans. For taxation, capital gains from crypto trading are subject to a flat tax (Prélèvement Forfaitaire Unique - PFU) of 30%, while exchanges between cryptocurrencies are generally not taxable events. While cryptocurrency is legal, some practical limitations exist, such as potential banking friction for residents transferring funds to exchanges, though SEPA transfers to major EU-regulated platforms remain standard.
Summary Points
I. Regulatory Status
* Cryptocurrency is Allowed-Regulated in Réunion.
* The legal status is identical to mainland France, as Réunion is an overseas department and region of France.
* It is fully subject to French national law and European Union regulations.
* As an EU Outermost Region (OMR), it benefits from EU passporting rights for licensed crypto companies under MiCA.
II. Key Regulatory Bodies
* Autorité des marchés financiers (AMF): The primary securities regulator. Responsible for registering and licensing Digital Asset Service Providers (DASPs/PSANs).
* Autorité de contrôle prudentiel et de résolution (ACPR): Responsible for prudential supervision and Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) compliance for crypto businesses.
* Institut d’émission des départements d’outre-mer (IEDOM): The local central bank authority, delegated by the Banque de France. Monitors financial stability and issues consumer warnings but enforces no separate local bans.
III. Important Legislation
* PACTE Law (Law No. 2019-486) - Enacted: 2019-05-22: Established the French legal framework for digital assets, creating the DASP/PSAN status and rules for Initial Coin Offerings (ICOs).
* Markets in Crypto-Assets Regulation (MiCA) (Regulation (EU) 2023/1114) - Enacted: 2023-05-31: Comprehensive EU-wide regulation replacing national frameworks. Imposes strict governance, consumer protection, and reserve requirements on stablecoin issuers and Crypto-Asset Service Providers (CASPs).
* Ordinance No. 2020-115 - Enacted: 2020-02-12: Strengthened AML/CFT obligations for crypto-asset service providers, aligning French law with the EU's 5th Anti-Money Laundering Directive.
IV. Compliance Requirements
* Mandatory DASP Registration: Custodians and fiat-to-crypto exchanges must register with the AMF for AML compliance and operational standards. Full licensing is optional but encouraged.
* AML/CFT Compliance: Crypto businesses must comply with obligations supervised by the ACPR.
* Taxation:
* Capital gains from crypto trading are subject to a flat tax (Prélèvement Forfaitaire Unique - PFU) of 30% (12.8% income tax + 17.2% social contributions) for occasional traders.
* Exchanges between cryptocurrencies are generally not taxable events; tax is triggered only upon conversion to fiat currency (Euros) or the purchase of goods/services.
V. Notable Restrictions or Limitations
* Banking Access: While legal, some local residents may face friction when transferring funds to crypto exchanges due to traditional banking caution. However, SEPA transfers to major EU-regulated exchanges are standard.
* There are no separate local bans on cryptocurrency activities.
VI. Recent Developments or Notes
* The EU's MiCA regulation is now the overarching framework, progressively replacing the national PACTE Law provisions.
* Réunion's status as a French Department (DROM) means French law applies fully, unlike French Overseas Collectivities (COMs) which may have more legislative autonomy.
* The Euro is the official currency.
Full Analysis Report
Full Analysis Report
The regulatory status of cryptocurrency in Réunion is 'Allowed-Regulated', mirroring the framework of mainland France. As an overseas department (DROM), Réunion is an integral part of the French Republic and the European Union. Consequently, the pioneering PACTE Law (Loi PACTE) enacted in May 2019 applies directly to the island. This legislation created a robust regulatory regime for 'Digital Asset Service Providers' (Prestataires de Services sur Actifs Numériques - PSANs). Under this regime, entities providing crypto custody or fiat-to-crypto exchange services to residents must register with the Autorité des marchés financiers (AMF). This registration ensures compliance with anti-money laundering (AML) and counter-terrorist financing (CFT) standards.
Retail trading is fully permitted for residents of Réunion. Individuals can legally buy, sell, and hold cryptocurrencies using registered platforms. The local arm of the central bank, the Institut d'émission des départements d'outre-mer (IEDOM), monitors the sector and periodically issues warnings regarding volatility and scams, but it does not restrict legitimate trading activity. Recent updates from the AMF in late 2025 have further liberalized the market, easing restrictions on retail access to crypto-indexed Exchange Traded Notes (ETNs), which applies to investors in Réunion as well.
From a taxation perspective, Réunion residents are subject to French tax laws. Since 2019, a flat tax (Prélèvement Forfaitaire Unique) of 30% applies to capital gains derived from digital assets for occasional traders. Professional traders may be subject to a progressive income tax scale under the 'Industrial and Commercial Profits' (BIC) regime. Crucially, crypto-to-crypto transactions remain tax-exempt, allowing for portfolio rebalancing without immediate tax liability.
The implementation of the EU's Markets in Crypto-Assets (MiCA) regulation serves as the overarching framework superseding parts of the PACTE Law. MiCA ensures that crypto-asset service providers licensed in other EU member states can passport their services to Réunion, and vice versa. This integration ensures that Réunion remains aligned with the broader European digital asset market, providing high levels of consumer protection and legal certainty.
The regulatory status of cryptocurrency in Réunion is 'Allowed-Regulated', mirroring the framework of mainland France. As an overseas department (DROM), Réunion is an integral part of the French Republic and the European Union. Consequently, the pioneering PACTE Law (Loi PACTE) enacted in May 2019 applies directly to the island. This legislation created a robust regulatory regime for 'Digital Asset Service Providers' (Prestataires de Services sur Actifs Numériques - PSANs). Under this regime, entities providing crypto custody or fiat-to-crypto exchange services to residents must register with the Autorité des marchés financiers (AMF). This registration ensures compliance with anti-money laundering (AML) and counter-terrorist financing (CFT) standards. Retail trading is fully permitted for residents of Réunion. Individuals can legally buy, sell, and hold cryptocurrencies using registered platforms. The local arm of the central bank, the Institut d'émission des départements d'outre-mer (IEDOM), monitors the sector and periodically issues warnings regarding volatility and scams, but it does not restrict legitimate trading activity. Recent updates from the AMF in late 2025 have further liberalized the market, easing restrictions on retail access to crypto-indexed Exchange Traded Notes (ETNs), which applies to investors in Réunion as well. From a taxation perspective, Réunion residents are subject to French tax laws. Since 2019, a flat tax (Prélèvement Forfaitaire Unique) of 30% applies to capital gains derived from digital assets for occasional traders. Professional traders may be subject to a progressive income tax scale under the 'Industrial and Commercial Profits' (BIC) regime. Crucially, crypto-to-crypto transactions remain tax-exempt, allowing for portfolio rebalancing without immediate tax liability. The implementation of the EU's Markets in Crypto-Assets (MiCA) regulation serves as the overarching framework superseding parts of the PACTE Law. MiCA ensures that crypto-asset service providers licensed in other EU member states can passport their services to Réunion, and vice versa. This integration ensures that Réunion remains aligned with the broader European digital asset market, providing high levels of consumer protection and legal certainty.
Source Evidence
Primary and secondary sources cited in this analysis
"The PACTE Law has established a framework for digital asset service providers (DASPs) in France."
"L'Institut d'émission des départements d'Outre-Mer (IEDOM) vous invite à la plus grande vigilance."
"Les prestataires de services sur actifs numériques... doivent être enregistrés auprès de l'Autorité des marchés financiers."
"The AMF adapted its doctrine to permit retail marketing of crypto-indexed ETNs."
"Since January 1, 2023, all crypto investors in France are subject to a 30% flat tax (PFU) on capital gains."
Web Sources (2)
Sources discovered via web search grounding
Search queries used (5)
- AMF France crypto regulation overseas departments
- buying bitcoin in Réunion legal status
- taxation of cryptocurrency in Réunion
- Réunion cryptocurrency regulation French law applicability
- IEDOM crypto assets Réunion
https://www.adan.eu/en/publication/the-french-regulatory-framework-for-markets-in-crypto-assets/
https://fincrimecentral.com/cryptocurrency-regulation-france-2025-guide/