Quick Answer
Yes, cryptocurrency is legal and regulated in France.
- It is highly regulated; service providers must register with financial authorities.
- However, crypto-assets are not considered legal tender under French law.
Legal Status of Crypto in France
Cryptocurrency is legal in France, operating within a comprehensive and well-defined regulatory framework rather than a legal gray area. This status was established through proactive legislation like the PACTE Act, which requires Digital Asset Service Providers (DASPs) to register with authorities, even though crypto-assets are not considered legal tender. Oversight from bodies such as the Autorité des Marchés Financiers (AMF) ensures compliance with strict regulations, a system now evolving to align with the broader European Markets in Crypto-Assets (MiCA) regulation.
Current Regulations
France's regulatory framework is built upon the 2019 PACTE Act, which created the status of Digital Asset Service Provider (DASP) and mandated registration with the Autorité des Marchés Financiers (AMF) for key activities. This comprehensive set of rules requires providers of crypto custody, exchange, and trading platforms to comply with strict anti-money laundering and cybersecurity obligations. As of December 30, 2024, the European Union's Markets in Crypto-Assets (MiCA) regulation has become the primary law for new entrants. Existing registered DASPs have a transitional period until mid-2026 to gain authorization under the new, harmonized EU rules.
Regulatory Authorities
Several key authorities are responsible for enforcing France's crypto regulations, each with distinct oversight functions.
- Autorité des Marchés Financiers (AMF): As the primary financial markets authority, the AMF handles the registration, licensing, and supervision of crypto-asset service providers. It ensures these firms comply with financial service regulations, investor protection rules, and anti-money laundering obligations.
- Autorité de Contrôle Prudentiel et de Résolution (ACPR): This body is the prudential supervisor for banks and insurance companies, collaborating with the AMF on anti-money laundering oversight and conducting on-site inspections. Under the MiCA regulation, the ACPR is also responsible for authorizing and supervising issuers of stablecoins.
- Traitement du renseignement et action contre les circuits financiers clandestins (TracFin): As France's financial intelligence unit, TracFin receives and analyzes suspicious transaction reports submitted by crypto service providers. Its core mission is to combat money laundering and the financing of terrorism within the digital asset space.
- Autorité Nationale des Jeux (ANJ): The National Gaming Authority specifically regulates online games that involve monetisable digital objects (JONUM), including those that use NFTs. It enforces rules related to these activities, covering areas like the protection of minors and anti-money laundering.
- Banque de France: The French central bank contributes to oversight through its advisory committees, which review how new regulations apply to crypto-asset services like lending and staking. It primarily focuses on maintaining overall financial stability in the face of new technologies.
Historical Context
France's regulatory journey began with its financial intelligence unit, Tracfin, first mentioning Bitcoin in a 2011 report. The first concrete rules followed in 2014, requiring payment service licenses for certain crypto activities. A major policy shift occurred with the 2019 PACTE Act, which created a comprehensive framework for Digital Asset Service Providers (DASPs) and fostered a dynamic local ecosystem. The latest evolution is the alignment with the EU’s Markets in Crypto-Assets (MiCA) regulation. Since late 2024, new entrants must follow MiCA rules, while existing DASPs have a transitional period until mid-2026 to comply, harmonizing French law with broader European standards.
Compliance Requirements for Businesses in France
Businesses operating in France's crypto sector must adhere to a strict set of compliance rules, primarily focused on preventing financial crime and protecting consumers. Key requirements outlined in French and EU regulations include:
- Anti-Money Laundering (AML) Checks: Firms must establish and enforce risk classification procedures to identify and assess potential money laundering and terrorist financing risks. This includes complying with the Transfer of Funds Regulation (TFR), which mandates traceability for all crypto-asset transfers under the "Travel Rule." Suspicious transactions must be reported to TracFin, France's financial intelligence unit.
- Know Your Customer (KYC) Requirements: As a core part of AML obligations, companies must conduct thorough customer due diligence. Under the MiCA regulation, this involves collecting, verifying, and storing identity information for every transaction, regardless of the amount. Enhanced due diligence is required for certain transactions, such as transfers over €1,000 involving a self-hosted wallet.
- Other Mandatory Procedures: Companies must be legally incorporated in an EU member state, have at least one director residing in the EU, and maintain minimum capital reserves. They are also required to establish robust internal controls, conflict of interest policies, and complaints-handling procedures. A resilient and secure IT system is mandatory, and client assets must be segregated from the company’s own funds.
Why this matters for Cross-Border Payments
For businesses facilitating cross-border payments between France and India, these stringent regulations introduce significant operational hurdles. The alignment with MiCA means that every transaction is subject to rigorous Know Your Customer (KYC) and anti-money laundering checks under the "Travel Rule." This creates potential pain points such as increased compliance costs, slower transaction processing times, and the complex challenge of harmonizing strict EU standards with India's own distinct regulatory approach to digital assets.
How Lightspark Enables Compliant Crypto-Native Payments
Lightspark offers a global payments platform called the Money Grid, designed to make money move instantly and at a low cost. It provides two primary solutions for businesses. Lightspark Connect enables access to this network natively through Bitcoin and the Lightning Network, offering features like AI-powered routing and enterprise-grade node management. For institutions preferring traditional rails, Grid Switch connects domestic real-time payment systems across borders, allowing fiat-to-fiat transfers without direct crypto conversion.
This infrastructure helps businesses navigate the complexities of cross-border payments. By leveraging the Lightning Network or existing real-time payment rails, Lightspark bypasses slow, costly legacy systems. To help regulated firms meet their obligations, its products offer features like audit-ready reporting and built-in compliance tools for requirements like the Travel Rule and OFAC screening. This allows institutions to use a modern payment network while managing their own stringent compliance frameworks.
To learn more about Lightspark's global payment solutions, visit their website.
Notice: This article is provided for informational purposes only and does not constitute legal advice.
FAQs
How is cryptocurrency taxed in France?
In France, capital gains from cryptocurrency sales are subject to a flat tax of 30%, which includes income tax and social security contributions. However, occasional sales below a certain annual threshold may be exempt from taxation.
Can I use cryptocurrency for everyday purchases in France?
While not considered legal tender, you can use cryptocurrency for purchases if the merchant agrees to accept it as a form of payment. The transaction is treated as a barter, and any capital gain realized from the disposal of the crypto may be taxable.
What are the penalties for non-compliant crypto businesses in France?
Non-compliant Digital Asset Service Providers (DASPs) can face severe penalties from the AMF, including fines, public warnings, and the suspension or withdrawal of their registration. In serious cases, criminal charges may also be brought against the company and its directors.
Sources
- Autorité des marchés financiers. "Crypto-assets: the AMF clarifies its policy on DASPs authorised under the PACTE Law to take account of the transitional period and facilitate the transition to MiCA." AMF, 17 June 2025, www.amf-france.org/en/news-publications/news/crypto-actifs-lamf-clarifie-sa-doctrine-applicable-aux-psan-autorises-dans-le-cadre-de-la-loi-pacte.
- Autorité des marchés financiers. "The European regulation Markets in Crypto-Assets (MiCA)." AMF, 29 Nov. 2024, www.amf-france.org/en/news-publications/depth/mica.
- Banque de France. "Payment instruments." Banque de France, www.banque-france.fr/en/aide-faq/Payment%20instruments.
- de Vauplane, Hubert, and Hugo Bordet. "Blockchain & Cryptocurrency Laws and Regulations 2025 – France." Global Legal Insights, 25 Oct. 2024, www.globallegalinsights.com/practice-areas/blockchain-cryptocurrency-laws-and-regulations/france/.
- Freeman Law. "France Cryptocurrency Laws and Regulations." Freeman Law, freemanlaw.com/cryptocurrency/france/.
- Sutour, Jérôme, and Elise Tek. "CMS Expert Guide to Crypto Regulation in France." CMS Expert Guides, CMS Legal, 7 Sept. 2023, cms.law/en/int/expert-guides/cms-expert-guide-to-crypto-regulation/france.
