France

Disclaimer: The regulatory information provided below is for general informational purposes only and may not reflect the most current legal developments. Cryptocurrency regulations are rapidly evolving and can change frequently. This information should not be considered legal or tax advice. Before making any business or investment decisions, please consult with qualified legal, tax, or financial professionals familiar with your specific jurisdiction and circumstances. Always verify current regulations with official government sources and regulatory bodies.

Legal Classification & Regulatory Framework

Cryptocurrency Status

France has established itself as one of Europe’s most progressive jurisdictions for cryptocurrency and blockchain regulation. Under French law, cryptocurrencies are classified as “digital assets” (actifs numériques) rather than legal tender, securities, or traditional currency. The foundational legal framework was established through the PACTE Act (Action Plan for Business Growth and Transformation) enacted in 2019, which provided comprehensive definitions and regulatory structures for the cryptocurrency industry.

The French Monetary and Financial Code (Code Monétaire et Financier) distinguishes between different categories of crypto-assets, including tokens, asset-referenced tokens (ARTs), and electronic money tokens (EMTs). Bitcoin and other cryptocurrencies fall within the broader category of crypto-assets, which are defined as digital representations of value that can be transferred, stored, or exchanged electronically, even though they are not issued or guaranteed by a central bank or public authority.

With the implementation of the EU Markets in Crypto-Assets Regulation (MiCA), France has aligned its national framework with harmonized European standards. The MiCA definitions have been incorporated into French law, establishing three primary categories: asset-referenced tokens that purport to maintain stable value by referencing other assets, electronic money tokens that reference fiat currency, and other crypto-assets including Bitcoin and utility tokens.

Tax Treatment

France applies a distinctive tax framework to cryptocurrency transactions. For occasional individual investors, capital gains from cryptocurrency sales are subject to a flat tax (Prélèvement Forfaitaire Unique, or PFU) of 30%, which comprises 12.8% income tax and 17.2% social security contributions. This flat tax applies when cryptocurrencies are converted to fiat currency or used to purchase goods and services.

A notable feature of French crypto taxation is that crypto-to-crypto exchanges are not considered taxable events. Investors can freely trade between different cryptocurrencies without triggering tax liability, with taxation only occurring upon conversion to fiat currency. Additionally, capital gains below €305 per year are exempt from taxation, providing a small threshold for minimal trading activity.

Since 2024, taxpayers also have the option to elect progressive income tax rates (ranging from 0% to 45%) instead of the flat tax, though social security contributions of 17.2% still apply under this alternative regime. This choice may benefit lower-income investors whose marginal tax rate falls below 12.8%.

Professional traders and those engaged in cryptocurrency activities under professional conditions are subject to different treatment. Their income is taxed as non-commercial profits (Bénéfices Non-Commerciaux, BNC) at progressive income tax rates up to 45%, plus professional social security contributions. Mining activities are similarly treated as non-commercial profits, with rewards taxable at their fair market value when received.

French residents must declare cryptocurrency accounts held with foreign platforms using Form 3916-bis, and all crypto-related income must be reported through the standard tax declaration process, including Forms 2042, 2042-C, and 2086 for capital gains reporting.

Regulatory Oversight

France employs a dual-regulator approach to cryptocurrency supervision. The Autorité des Marchés Financiers (AMF) serves as the primary financial markets authority responsible for registering, licensing, and supervising crypto-asset service providers. The AMF maintains a public whitelist of authorized providers, enabling consumers to verify the legitimacy of crypto businesses operating in France.

The Autorité de Contrôle Prudentiel et de Résolution (ACPR), which is integrated within the Banque de France, oversees banking and prudential matters related to crypto activities. The ACPR is particularly responsible for supervising electronic money token (EMT) issuers and ensuring compliance with anti-money laundering and counter-terrorist financing (AML/CFT) requirements.

Tracfin, France’s financial intelligence unit, handles AML/CFT enforcement and has been involved in cryptocurrency oversight since issuing early guidance on Bitcoin in 2011. The Direction Générale des Finances Publiques (DGFiP) administers the tax regime applicable to cryptocurrency transactions.

Under the MiCA framework, crypto-asset service providers (CASPs) must obtain authorization from the AMF before providing services. Existing Digital Asset Service Providers (DASPs) registered under the PACTE regime benefit from a transitional period allowing continued operations while transitioning to full MiCA compliance.

Business Environment

Banking Relationships

France has taken legislative steps to address the historical challenge of crypto businesses accessing banking services. The PACTE Act includes provisions requiring credit institutions to implement objective, non-discriminatory, and proportionate criteria for opening bank accounts. Registered DASPs and licensed ICO issuers cannot be arbitrarily refused banking services.

When banks do refuse account opening requests, they must communicate their reasons to both the applicant and the relevant regulatory authorities (AMF and ACPR). A silence of more than two months from receipt of a complete application is considered a refusal. Crypto businesses have the right to appeal such decisions.

Despite these protections, practical challenges remain. Traditional banking institutions sometimes exhibit caution toward crypto businesses due to compliance concerns and risk management considerations. However, the regulatory clarity provided by the PACTE Act and MiCA has improved the situation, with major French banks such as Société Générale actively engaging with the crypto sector through subsidiaries like SG-Forge, which has received authorization to issue electronic money tokens.

Licensing Requirements

Under the current regulatory framework, crypto-asset service providers must obtain CASP authorization under MiCA to operate in France. The required services covered include custody of crypto-assets on behalf of clients, operation of trading platforms, exchange of crypto-assets for funds or other crypto-assets, execution of orders, placement of crypto-assets, reception and transmission of orders, provision of advice, and portfolio management.

Traditional financial institutions already authorized as credit institutions, investment firms, or electronic money institutions may provide certain crypto-asset services through a simplified notification process rather than obtaining separate CASP authorization, subject to meeting specific requirements.

For stablecoin issuers, the framework distinguishes between electronic money tokens (EMTs), which may only be issued by credit institutions or electronic money institutions under ACPR supervision, and asset-referenced tokens (ARTs), which have their own authorization requirements. Circle France, Schuman Financial, and Société Générale Forge are among the entities that have received authorization to issue EMTs in France.

The AMF has established pre-filing and pre-instruction mechanisms to assist entities preparing for MiCA authorization, demonstrating the regulatory commitment to supporting industry transition.

Innovation Support

France has positioned itself as a leader in fintech and blockchain innovation through multiple government and regulatory initiatives. The ACPR and AMF jointly operate a Fintech-Innovation Hub that provides dedicated support for fintech companies, including those in the crypto space. This includes personalized assistance with regulatory requirements, regular training programs, and participation in fintech incubators.

The Banque de France has established “Le Lab,” an innovation hub focused on exploring emerging technologies including blockchain and artificial intelligence. Le Lab collaborates with startups, research institutions, and the private sector to develop innovative solutions relevant to central banking functions.

France has been active in central bank digital currency (CBDC) experimentation, with the Banque de France conducting multiple wholesale CBDC trials. These experiments have explored settlement solutions for tokenized securities and cross-border payments, positioning France at the forefront of European CBDC development. The Eurosystem has committed to providing market participants with a wholesale CBDC by 2026.

The country also participates in the EU’s Pilot Regime for DLT-based market infrastructures, which allows testing of distributed ledger technology for trading and settling tokenized financial instruments. Several French entities are expected to receive authorization as DLT multilateral trading facilities (DLT MTFs).

France has introduced an innovative experimental regime for games with monetizable digital objects (JONUMs), primarily based on NFTs. This three-year experimental framework, supervised by the Autorité Nationale des Jeux (ANJ), represents a pioneering approach to regulating the intersection of gaming and digital assets.

Market Characteristics

Adoption Patterns

France demonstrates strong cryptocurrency adoption compared to other European countries. Consumer interest in crypto-assets has grown significantly, with Bitcoin remaining the most widely held cryptocurrency among French investors. The investor base skews younger, with the majority of crypto holders under the age of 35.

France has shown particular strength in decentralized finance (DeFi) adoption, with French users actively engaging with DeFi protocols and applications. This interest in decentralized applications has contributed to France’s improving position in global crypto adoption indices.

While cryptocurrencies are not legal tender in France, merchants may choose to accept them as payment for goods and services. Direct crypto payments remain relatively uncommon at retail establishments, but workarounds exist, including gift card programs offered by major exchanges that allow users to convert cryptocurrency into vouchers redeemable at participating retailers.

Institutional adoption has accelerated, with French banks and asset managers increasingly engaging with the crypto sector. Investment products providing crypto exposure, including exchange-traded products, are becoming available to French investors through regulated channels. The state investment bank Bpifrance has established a Web3 fund to support the French blockchain ecosystem by investing in venture capital funds focused on DeFi, NFTs, gaming, and blockchain infrastructure.

Industry Focus

France hosts a diverse and growing crypto ecosystem. The country has attracted major international players, with global exchanges obtaining DASP registration to operate in the French market. More than 100 entities have been registered as DASPs under the PACTE regime, making France one of the most structured crypto markets in Europe.

The country has developed particular strength in institutional-grade crypto services, including custody, trading, and tokenization of traditional financial instruments. French entities have been at the forefront of issuing regulated stablecoins and developing compliant infrastructure for institutional investors.

Paris and other French cities have become centers for blockchain and fintech events, including major gatherings like Paris Blockchain Week and Ethereum Community Conference (EthCC). The annual ACPR-AMF Forum Fintech brings together regulators and industry participants, fostering dialogue between the public and private sectors.

Cryptocurrency mining is legal in France and not subject to specific regulation, though the activity is not prevalent due to energy costs and climate considerations. The focus has been more on financial services, infrastructure development, and tokenization applications.

Regulatory Evolution

France’s regulatory approach has evolved substantially over the past decade, moving from initial warnings about cryptocurrency risks to developing one of Europe’s most comprehensive regulatory frameworks. The journey began with Tracfin’s first mention of Bitcoin in 2011, followed by payment service license requirements in 2014, AML legislation covering crypto platforms in 2016, and the landmark PACTE Act in 2019.

The transition to MiCA represents the next phase of regulatory evolution, harmonizing French rules with broader European standards. France has been proactive in preparing for this transition, with regulators working closely with industry stakeholders to ensure a smooth changeover. The transitional period extends until mid-2026 for existing registered entities.

France actively participates in shaping European crypto policy. French regulators, alongside Austrian and Italian counterparts, have presented proposals to strengthen the overall European crypto supervision framework while maintaining competitiveness. These efforts aim to enhance consumer protection while supporting innovation.

Looking ahead, French authorities are actively considering appropriate regulatory frameworks for DeFi, with working groups examining potential approaches to smart contract certification, governance requirements, and user protection. The Banque de France and ACPR have conducted public consultations and published discussion papers outlining potential regulatory directions for decentralized finance.

Legislative proposals have also emerged regarding strategic cryptocurrency reserves and enhanced support for euro-backed stablecoins, though these remain at early stages of political consideration.

For Current Information:

• Autorité des Marchés Financiers (AMF): https://www.amf-france.org
• Autorité de Contrôle Prudentiel et de Résolution (ACPR): https://acpr.banque-france.fr
• Banque de France: https://www.banque-france.fr
• Direction Générale des Finances Publiques (DGFiP): https://www.impots.gouv.fr
• Tracfin (Financial Intelligence Unit): https://www.economie.gouv.fr/tracfin
• AMF DASP Registry: https://www.amf-france.org/en/professionals/fintech/my-relations-amf/obtain-dasp-authorisation
• MiCA Information (AMF): https://www.amf-france.org/en/news-publications/depth/mica