Wallis and Futuna
Retail_Trading_Status
- Analysis ID
- #828
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- Latest
- Created
- 2025-12-12 05:24
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- ded9bfb9...
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Executive Summary
Retail cryptocurrency trading is legal and regulated in Wallis and Futuna, primarily falling under the extended jurisdiction of the French regulatory framework. The 'Loi PACTE' regime for Digital Asset Service Providers (PSAN) has been explicitly extended to the territory, requiring intermediaries to register with the French Autorité des Marchés Financiers (AMF). While the regulatory environment mirrors mainland France regarding AML/KYC and licensing, the territory benefits from a distinct fiscal autonomy, notably the absence of personal income tax on capital gains for individuals.
Key Pillars
Autorité des Marchés Financiers (AMF) (Primary Regulator for licensing/registration)
Institut d'Émission d'Outre-Mer (IEOM) (Central Bank and banking oversight)
Mandatory PSAN Registration (Prestataire de Services sur Actifs Numériques) for custodians and fiat-crypto exchanges
Strict AML/CFT compliance aligned with French and EU standards
Autorité de Contrôle Prudentiel et de Résolution (ACPR) (Prudential supervision)
Landmark Laws
Code Monétaire et Financier (Extended Provisions) (Articles L. 766-2 et seq. / L. 54-10-1) - Enacted: 2020-12-16
- Extends the French 'Loi PACTE' framework for digital assets to Wallis and Futuna, making the PSAN registration regime applicable to services targeting the territory.
- Source
Ordonnance n° 2020-1595 (Ordonnance n° 2020-1595) - Enacted: 2020-12-16
- Harmonizes financial regulations in overseas territories, specifically extending AML/CFT rules and the digital asset service provider framework to Wallis and Futuna.
- Source
Loi PACTE (Action Plan for Business Growth and Transformation) (Loi n° 2019-486) - Enacted: 2019-05-22
- Established the PSAN status in France, creating a mandatory registration for custodians/fiat exchanges and an optional license for other crypto services.
- Source
Considerations
Tax Advantage: No personal income tax (Impôt sur le Revenu) exists in Wallis and Futuna, rendering personal crypto capital gains effectively tax-free.
Banking Access: Local banks may be hesitant to process crypto-related transfers despite the legal status; users often rely on EU-based SEPA transfers.
Currency: The CFP Franc (XPF) is pegged to the Euro, providing stability against fiat volatility.
MiCA Transition: As a French Overseas Collectivity, the transition from the PSAN regime to the EU's MiCA regulation (fully effective by 2026) will impact local service providers.
Notes
The status is 'Allowed-Regulated' due to the extension of French law. However, the practical experience is 'offshore' in nature; users likely use global or French platforms (e.g., Coinhouse, Binance France) rather than any local physical exchange. The tax benefit is significant but applies only to bona fide tax residents.
Remaining Uncertainties
- Specific timeline for the full implementation of MiCA standards in the overseas collectivity code.
- Practical availability of banking rails for crypto-fiat withdrawals with local banks (Banque de Wallis et Futuna).
Detailed Explanation
Detailed Explanation
Retail cryptocurrency trading is legal and regulated in Wallis and Futuna, with a status of 'Allowed-Regulated'. This legal standing is derived from the explicit extension of the French regulatory framework to the territory, primarily through the 'Loi PACTE' regime for Digital Asset Service Providers (PSAN). The key legislative action was the extension of provisions from the French Code Monétaire et Financier, specifically Articles L. 766-2 et seq. and L. 54-10-1, enacted on December 16, 2020, which made the PSAN registration regime applicable to services targeting Wallis and Futuna. This was harmonized by Ordonnance n° 2020-1595 on the same date, which extended AML/CFT rules and the digital asset service provider framework to overseas territories. The foundational French law, Loi PACTE (Loi n° 2019-486) enacted on May 22, 2019, established the PSAN status, creating a mandatory registration for custodians and fiat-to-crypto exchanges and an optional license for other services. The primary regulator for licensing and registration is the French Autorité des Marchés Financiers (AMF), while the Institut d'Émission d'Outre-Mer (IEOM) acts as the central bank, and the Autorité de Contrôle Prudentiel et de Résolution (ACPR) provides prudential supervision. Compliance requirements are strict, mandating PSAN registration for relevant service providers and adherence to French and EU-standard Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) rules. A significant practical consideration is the territory's distinct fiscal autonomy, which includes the absence of a personal income tax, rendering personal cryptocurrency capital gains effectively tax-free for bona fide residents. However, despite the clear legal framework, practical banking access can be limited as local banks may be hesitant to process crypto-related transactions, leading users to often rely on EU-based SEPA transfers. The currency is the CFP Franc (XPF), which is pegged to the Euro. Looking forward, as a French Overseas Collectivity, Wallis and Futuna will be impacted by the transition from the national PSAN regime to the European Union's Markets in Crypto-Assets (MiCA) regulation, which is set to be fully effective by 2026.
Summary Points
I. Regulatory Status
* Retail cryptocurrency trading is legal and regulated in Wallis and Futuna.
* The status is 'Allowed-Regulated', operating under the extended jurisdiction of French law.
II. Key Regulatory Bodies
* Autorité des Marchés Financiers (AMF): The primary regulator for PSAN licensing and registration.
* Institut d'Émission d'Outre-Mer (IEOM): Acts as the central bank and oversees banking activities.
* Autorité de Contrôle Prudentiel et de Résolution (ACPR): Provides prudential supervision.
III. Important Legislation
* Code Monétaire et Financier (Extended Provisions) (Articles L. 766-2 et seq. / L. 54-10-1)
* Enacted: December 16, 2020.
* Extends the French 'Loi PACTE' framework for digital assets to Wallis and Futuna, making the PSAN registration regime applicable.
* Ordonnance n° 2020-1595
* Enacted: December 16, 2020.
* Harmonizes financial regulations, specifically extending AML/CFT rules and the digital asset service provider framework to the territory.
* Loi PACTE (Action Plan for Business Growth and Transformation) (Loi n° 2019-486)
* Enacted: May 22, 2019.
* Established the PSAN status in France, creating a mandatory registration for custodians and fiat-to-crypto exchanges.
IV. Compliance Requirements
* Mandatory PSAN Registration: Digital Asset Service Providers (Prestataire de Services sur Actifs Numériques) offering custody or fiat-to-crypto exchange services must register with the AMF.
* Strict AML/CFT Compliance: Service providers must adhere to anti-money laundering and counter-terrorist financing standards aligned with French and EU regulations.
V. Notable Restrictions or Limitations
* Banking Access: Despite the legal status, local banks may be hesitant to process cryptocurrency-related transfers. Users often rely on EU-based SEPA transfers.
* Practical Market: The experience is largely 'offshore'; users typically access global or French-regulated platforms rather than local physical exchanges.
VI. Recent Developments or Notes
* Tax Advantage: Wallis and Futuna has no personal income tax (Impôt sur le Revenu), making personal cryptocurrency capital gains effectively tax-free for bona fide tax residents.
* Currency: The official currency is the CFP Franc (XPF), which is pegged to the Euro.
* MiCA Transition: As a French Overseas Collectivity, the territory will transition from the national PSAN regime to the EU's Markets in Crypto-Assets (MiCA) regulation, which is scheduled to be fully effective by 2026.
Full Analysis Report
Full Analysis Report
The regulatory status of cryptocurrency in Wallis and Futuna is 'Allowed-Regulated', defined by its political status as a French Overseas Collectivity (Collectivité d'outre-mer). Unlike sovereign nations in the Pacific that may lack specific crypto frameworks, Wallis and Futuna adopts the sophisticated regulatory regime of mainland France. The cornerstone of this framework is the 'Loi PACTE' of 2019, which introduced the status of Digital Asset Service Providers (PSAN). Provisions of the French Monetary and Financial Code governing these assets (specifically Articles L. 54-10-1 and following) have been explicitly extended to the territory via legislative ordinances, most notably Ordinance n° 2020-1595.
Under this regime, any entity providing crypto-custody services or facilitating the purchase/sale of digital assets for legal tender in Wallis and Futuna must be registered with the Autorité des Marchés Financiers (AMF). This registration ensures compliance with strict Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) standards. The Institut d'Émission d'Outre-Mer (IEOM), acting as the central bank for the French Pacific territories, monitors the financial system and issues warnings to the public regarding the risks of unregulated crypto assets, mirroring the stance of the Banque de France.
A unique and critical distinction for retail investors in Wallis and Futuna is the fiscal environment. The territory possesses fiscal autonomy and does not levy a personal income tax (Impôt sur le Revenu) on individuals. Consequently, unlike in mainland France where crypto gains are subject to a flat tax (PFU) of 30%, individual capital gains realized from cryptocurrency trading in Wallis and Futuna are generally not subject to local taxation. This creates a highly favorable environment for individual traders, provided they are tax residents of the territory.
Looking ahead, the regulatory landscape is set to evolve with the European Union's Markets in Crypto-Assets (MiCA) regulation. While MiCA applies directly to EU member states, its provisions are being integrated into the French framework applicable to overseas territories. The transition period for existing PSANs to obtain MiCA authorization will continue through 2026. Retail traders should prioritize platforms that hold valid PSAN registration or future MiCA authorization to ensure legal recourse and fund safety.
The regulatory status of cryptocurrency in Wallis and Futuna is 'Allowed-Regulated', defined by its political status as a French Overseas Collectivity (Collectivité d'outre-mer). Unlike sovereign nations in the Pacific that may lack specific crypto frameworks, Wallis and Futuna adopts the sophisticated regulatory regime of mainland France. The cornerstone of this framework is the 'Loi PACTE' of 2019, which introduced the status of Digital Asset Service Providers (PSAN). Provisions of the French Monetary and Financial Code governing these assets (specifically Articles L. 54-10-1 and following) have been explicitly extended to the territory via legislative ordinances, most notably Ordinance n° 2020-1595. Under this regime, any entity providing crypto-custody services or facilitating the purchase/sale of digital assets for legal tender in Wallis and Futuna must be registered with the Autorité des Marchés Financiers (AMF). This registration ensures compliance with strict Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) standards. The Institut d'Émission d'Outre-Mer (IEOM), acting as the central bank for the French Pacific territories, monitors the financial system and issues warnings to the public regarding the risks of unregulated crypto assets, mirroring the stance of the Banque de France. A unique and critical distinction for retail investors in Wallis and Futuna is the fiscal environment. The territory possesses fiscal autonomy and does not levy a personal income tax (Impôt sur le Revenu) on individuals. Consequently, unlike in mainland France where crypto gains are subject to a flat tax (PFU) of 30%, individual capital gains realized from cryptocurrency trading in Wallis and Futuna are generally not subject to local taxation. This creates a highly favorable environment for individual traders, provided they are tax residents of the territory. Looking ahead, the regulatory landscape is set to evolve with the European Union's Markets in Crypto-Assets (MiCA) regulation. While MiCA applies directly to EU member states, its provisions are being integrated into the French framework applicable to overseas territories. The transition period for existing PSANs to obtain MiCA authorization will continue through 2026. Retail traders should prioritize platforms that hold valid PSAN registration or future MiCA authorization to ensure legal recourse and fund safety.
Source Evidence
Primary and secondary sources cited in this analysis
"Sont applicables dans les îles Wallis et Futuna... Sous-section 3 : Crypto-actifs"
"L'IEOM invite le public à la plus grande vigilance... Les prestataires doivent être enregistrés auprès de l'AMF."
"Mandatory registration for custodians and fiat-crypto exchanges."
"Il n'existe pas d'impôt sur le revenu des personnes physiques à Wallis et Futuna."
Web Sources (3)
Sources discovered via web search grounding
Search queries used (10)
- AMF France crypto regulation overseas territories
- Wallis and Futuna cryptocurrency regulation
- IEOM crypto assets warning
- Ordonnance n° 2020-1595 du 16 décembre 2020 Wallis et Futuna
- application Loi PACTE Wallis et Futuna crypto
- Code monétaire et financier article L766-2 crypto Wallis et Futuna
- IEOM Wallis et Futuna mise en garde crypto actifs
- "L. 54-10-1" applicable Wallis et Futuna
- fiscalité plus-values crypto Wallis et Futuna particuliers
- impôt sur le revenu Wallis et Futuna crypto
https://www.idnow.io/fr/blog-fr/compatibilite-crypto-kyc-onboarding-client/
https://www.richelieu-international.com/fiscalite-cryptos-expatrie/
https://www.lapostille.fr/2024/07/26/investissement-en-crypto-actifs-liedom-appelle-a-la-vigilance/