Saint Martin (French part)
Retail_Trading_Status
- Analysis ID
- #834
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- Created
- 2025-12-12 05:38
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Executive Summary
Retail cryptocurrency trading is legal and regulated in the Collectivity of Saint Martin (French part), falling under the jurisdiction of French financial authorities (AMF and ACPR) and EU regulations. The 'Code monétaire et financier' applies, requiring crypto-asset service providers (PSANs) to register with the AMF for anti-money laundering (AML) compliance. Unlike the Dutch side (Sint Maarten), which has no capital gains tax for individuals, the French side has fiscal autonomy with its own tax code (Code Général des Impôts de Saint-Martin), where crypto gains are generally subject to taxation.
Key Pillars
Autorité des marchés financiers (AMF) - Primary regulator for financial markets and PSAN registration
Autorité de contrôle prudentiel et de résolution (ACPR) - Banking and insurance supervisor, handles AML/CFT oversight
Institut d'Émission des Départements d'Outre-mer (IEDOM) - Acts as the central bank representative
PSAN Regime (Prestataires de Services sur Actifs Numériques) - Mandatory registration for custody and fiat-to-crypto exchange services
EU MiCA Regulation - Applicable as Saint Martin is an EU Outermost Region (OMR)
Landmark Laws
Code monétaire et financier (French Monetary and Financial Code) (Article L54-10-1 et seq.) - Enacted: 2019-05-22
- Establishes the PSAN regulatory framework (Loi PACTE), requiring mandatory registration for digital asset service providers operating in France and its overseas territories for AML/CFT compliance.
- Source
Code Général des Impôts de Saint-Martin (CGISM) (CGISM)
- Local tax code governing the taxation of income and capital gains for tax residents of the Collectivity of Saint Martin, distinct from mainland France's tax code.
- Source
Regulation (EU) 2023/1114 (MiCA) (EU 2023/1114) - Enacted: 2023-05-31
- Comprehensive EU-wide framework for crypto-assets, applicable to Saint Martin as an Outermost Region, replacing national rules over time.
- Source
Considerations
Saint Martin (French) is fiscally autonomous; tax residents pay taxes to the Collectivity, not mainland France.
Capital gains on crypto are taxable, unlike in the neighboring Dutch Sint Maarten where they are generally tax-free for individuals.
Strict AML/KYC rules apply; anonymous trading is effectively banned via registered platforms.
Residents must declare accounts held on foreign exchanges (e.g., Form 3916-bis equivalent) to avoid penalties.
The Euro (EUR) is the official currency, though USD is widely accepted.
Notes
It is crucial to distinguish between Saint Martin (French Collectivity, EU Outermost Region) and Sint Maarten (Dutch constituent country, OCT). The regulatory and tax regimes are completely different. The French side is highly regulated and taxable; the Dutch side is less regulated and generally tax-free for individuals.
Remaining Uncertainties
- The exact tax rate for crypto capital gains under the Code Général des Impôts de Saint-Martin (whether it mirrors the French 30% PFU or uses a progressive scale) is not explicitly detailed in public summaries.
- Specific local enforcement actions by the Saint Martin tax authorities regarding undeclared crypto assets.
Detailed Explanation
Detailed Explanation
Retail cryptocurrency trading is legal and regulated in the Collectivity of Saint Martin (French part). The jurisdiction falls under the oversight of French financial authorities and European Union regulations, given its status as an EU Outermost Region. The primary regulatory framework is established by the French Monetary and Financial Code (Code monétaire et financier), specifically Article L54-10-1 et seq., which was enacted on May 22, 2019, as part of the Loi PACTE. This legislation mandates that any entity providing crypto-asset services, such as custody or fiat-to-crypto exchange, must register as a Digital Asset Service Provider (Prestataire de Services sur Actifs Numériques or PSAN) with the Autorité des marchés financiers (AMF) for anti-money laundering and counter-terrorist financing compliance. The Autorité de contrôle prudentiel et de résolution (ACPR) handles AML/CFT oversight, while the Institut d'Émission des Départements d'Outre-mer (IEDOM) acts as the central bank representative. Furthermore, the EU's Markets in Crypto-Assets Regulation (MiCA), Regulation (EU) 2023/1114 enacted on May 31, 2023, is applicable and will progressively replace national rules, ensuring a harmonized regulatory approach across the EU, including Saint Martin. The local tax regime is governed by the Code Général des Impôts de Saint-Martin (CGISM), which is distinct from mainland France's tax code, reflecting the Collectivity's fiscal autonomy. Under this code, capital gains from cryptocurrency are generally subject to taxation, unlike in the neighboring Dutch side of the island, Sint Maarten, where such gains are typically tax-free for individuals. Strict anti-money laundering and know-your-customer rules are enforced, effectively banning anonymous trading through registered platforms. Residents are also required to declare any accounts held on foreign cryptocurrency exchanges, using a form equivalent to France's Form 3916-bis, to avoid penalties. The official currency is the Euro, though the US Dollar is widely accepted in practice. It is crucial to note the complete regulatory and tax divergence from Sint Maarten, which is a Dutch Overseas Country and Territory with a different, less regulated regime.
Summary Points
I. Regulatory Status
* Retail cryptocurrency trading is Allowed-Regulated.
* The jurisdiction is under French and EU regulatory oversight as an EU Outermost Region (OMR).
* It is fiscally autonomous from mainland France, with its own local tax code.
II. Key Regulatory Bodies
* Autorité des marchés financiers (AMF): Primary regulator for financial markets; manages the mandatory PSAN registration regime.
* Autorité de contrôle prudentiel et de résolution (ACPR): Banking and insurance supervisor; handles AML/CFT oversight for crypto-asset service providers.
* Institut d'Émission des Départements d'Outre-mer (IEDOM): Acts as the central bank representative in the territory.
III. Important Legislation
* Code monétaire et financier (French Monetary and Financial Code), Article L54-10-1 et seq. (Enacted: 2019-05-22)
* Establishes the PSAN regulatory framework (Loi PACTE), requiring mandatory registration for digital asset service providers for AML/CFT compliance.
* Code Général des Impôts de Saint-Martin (CGISM)
* Local tax code governing the taxation of income and capital gains for tax residents of the Collectivity.
* Regulation (EU) 2023/1114 (MiCA) (Enacted: 2023-05-31)
* Comprehensive EU-wide framework for crypto-assets, applicable to Saint Martin as an Outermost Region, which will replace national rules over time.
IV. Compliance Requirements
* Crypto-asset service providers (e.g., custody, fiat-to-crypto exchange) must register as a Prestataire de Services sur Actifs Numériques (PSAN) with the AMF.
* Strict AML/KYC rules apply to all registered platforms, effectively banning anonymous trading.
* Tax residents must declare cryptocurrency capital gains under the local Code Général des Impôts de Saint-Martin (CGISM).
* Residents must declare accounts held on foreign cryptocurrency exchanges to local authorities (e.g., via a Form 3916-bis equivalent).
V. Notable Restrictions or Limitations
* Anonymous cryptocurrency trading is effectively banned via registered platforms due to strict AML/KYC requirements.
* Capital gains on cryptocurrency are generally taxable, creating a distinct fiscal environment compared to the neighboring Dutch Sint Maarten.
* Service providers operating without the mandatory PSAN registration are non-compliant.
VI. Recent Developments or Notes
* The EU's MiCA Regulation (2023/1114) is applicable and represents a significant upcoming harmonization of rules.
* It is crucial to distinguish between Saint Martin (French Collectivity, EU OMR) and Sint Maarten (Dutch constituent country, OCT) as their regulatory and tax regimes are completely different.
* The Euro (EUR) is the official currency, though the US Dollar (USD) is widely accepted in practice.
Full Analysis Report
Full Analysis Report
In the Collectivity of Saint Martin (French part), the regulatory status of retail cryptocurrency trading is 'Allowed-Regulated'. As an Overseas Collectivity (COM) of France and an Outermost Region (OMR) of the European Union, Saint Martin automatically adopts most French financial regulations. Specifically, the 'Loi PACTE' of 2019 introduced the PSAN (Prestataires de Services sur Actifs Numériques) regime, which is enforced by the Autorité des marchés financiers (AMF) and the Autorité de contrôle prudentiel et de résolution (ACPR). This framework requires any entity providing digital asset custody or fiat-to-crypto exchange services to residents to register with the AMF and comply with strict Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) standards.
From a practical standpoint, residents can legally buy, sell, and hold cryptocurrencies using platforms registered as PSANs in France or other EU-compliant exchanges. The IEDOM (Institut d'Émission des Départements d'Outre-mer) serves as the central bank representative, ensuring monetary stability and overseeing the banking system's interaction with crypto assets. While local banks may still exercise caution regarding crypto-related transfers, there is no blanket ban on such transactions, provided they originate from regulated entities.
Taxation is a critical differentiator for Saint Martin compared to mainland France. The Collectivity has fiscal autonomy, meaning it operates under its own 'Code Général des Impôts de Saint-Martin' (CGISM) rather than the mainland French tax code. While mainland France applies a 30% flat tax (PFU) on crypto gains, Saint Martin's tax residents are subject to local rules. Generally, capital gains are taxable, and residents are obligated to declare their global income, including crypto gains, to the local tax authority (Centre des Finances Publiques de Saint-Martin). This stands in sharp contrast to the southern Dutch side of the island (Sint Maarten), where individual capital gains are typically not taxed.
Looking ahead, the full implementation of the EU's Markets in Crypto-Assets (MiCA) regulation will further harmonize rules, allowing passporting of services from other EU member states to Saint Martin. However, the fiscal autonomy will remain, meaning the tax obligations will continue to be governed locally. Residents are advised to consult local tax professionals to navigate the specific reporting requirements of the CGISM, as penalties for non-compliance (such as failing to declare foreign accounts) can be significant.
In the Collectivity of Saint Martin (French part), the regulatory status of retail cryptocurrency trading is 'Allowed-Regulated'. As an Overseas Collectivity (COM) of France and an Outermost Region (OMR) of the European Union, Saint Martin automatically adopts most French financial regulations. Specifically, the 'Loi PACTE' of 2019 introduced the PSAN (Prestataires de Services sur Actifs Numériques) regime, which is enforced by the Autorité des marchés financiers (AMF) and the Autorité de contrôle prudentiel et de résolution (ACPR). This framework requires any entity providing digital asset custody or fiat-to-crypto exchange services to residents to register with the AMF and comply with strict Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) standards. From a practical standpoint, residents can legally buy, sell, and hold cryptocurrencies using platforms registered as PSANs in France or other EU-compliant exchanges. The IEDOM (Institut d'Émission des Départements d'Outre-mer) serves as the central bank representative, ensuring monetary stability and overseeing the banking system's interaction with crypto assets. While local banks may still exercise caution regarding crypto-related transfers, there is no blanket ban on such transactions, provided they originate from regulated entities. Taxation is a critical differentiator for Saint Martin compared to mainland France. The Collectivity has fiscal autonomy, meaning it operates under its own 'Code Général des Impôts de Saint-Martin' (CGISM) rather than the mainland French tax code. While mainland France applies a 30% flat tax (PFU) on crypto gains, Saint Martin's tax residents are subject to local rules. Generally, capital gains are taxable, and residents are obligated to declare their global income, including crypto gains, to the local tax authority (Centre des Finances Publiques de Saint-Martin). This stands in sharp contrast to the southern Dutch side of the island (Sint Maarten), where individual capital gains are typically not taxed. Looking ahead, the full implementation of the EU's Markets in Crypto-Assets (MiCA) regulation will further harmonize rules, allowing passporting of services from other EU member states to Saint Martin. However, the fiscal autonomy will remain, meaning the tax obligations will continue to be governed locally. Residents are advised to consult local tax professionals to navigate the specific reporting requirements of the CGISM, as penalties for non-compliance (such as failing to declare foreign accounts) can be significant.
Source Evidence
Primary and secondary sources cited in this analysis
"La liste des prestataires de services sur actifs numériques (PSAN) enregistrés auprès de l'AMF."
"L'IEDOM assure les missions de banque centrale par délégation de la Banque de France dans les départements et collectivités d'outre-mer."
"Le code général des impôts de la collectivité de Saint-Martin s'applique de plein droit."
"In Sint Maarten, cryptocurrencies held by private individuals are actually completely untaxed... unlike in Europe."
Sources (Raw Data)
Sources (Raw Data)
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