Cryptocurrency Regulations and Laws in France
Discover cryptocurrency regulations in France. Learn how crypto is classified and taxed, what registration is required for exchanges, and how the AMF oversees France’s crypto service providers under the PACTE law.
France has developed a clear regulatory framework for cryptocurrencies, focusing on compliance, consumer protection, and financial transparency. Crypto is legal, regulated, and taxed, and service providers must register with the financial authority before operating.
Summary
France recognizes cryptocurrencies as digital assets (actifs numériques) and regulates them under the PACTE law. Exchanges, custodians, and other crypto-related businesses must register with the Autorité des Marchés Financiers (AMF). Crypto is subject to income and capital gains tax, and the country is actively aligning with the EU's MiCA regulation.
Legal Status
- General Use: Legal
- Trading: Legal and regulated
- Exchanges: Legal; must be registered with the AMF
- Mining: Legal and unregulated
- ICOs & Tokens: Allowed; optional AMF visa if targeting French investors
- NFTs: Legal; treated as digital assets, may fall under securities law in some cases
Taxation
Crypto income is taxable in France under different regimes for individuals and businesses. Occasional users benefit from a flat rate tax, while frequent traders or businesses are taxed under regular income tax rules.
- Capital Gains Tax: 30% flat rate for individuals (12.8% income tax + 17.2% social contributions)
- Income Tax on Crypto Earnings: Progressive tax rates apply if classified as professional activity
- Mining Taxation: Considered commercial income; subject to business tax rates
- Reporting Requirements: Mandatory declaration of foreign crypto accounts and taxable gains
Regulatory Bodies
- Autorité des Marchés Financiers (AMF): Regulates crypto asset service providers (CASPs) and ICOs
- Autorité de Contrôle Prudentiel et de Résolution (ACPR): Oversees banking and AML compliance
- Ministry of Economy and Finance: Defines legal and tax treatment
- Direction Générale des Finances Publiques (DGFiP): Handles tax collection and enforcement
Key Regulations & Laws
- 2019 PACTE Law: Established the legal framework for ICOs and mandatory registration for crypto service providers
- AMF Registration Requirement: All crypto exchanges and custodians must be registered to operate in France
- 2021 AML Reforms: Introduced stricter KYC requirements and lowered thresholds for anonymous transactions
- EU MiCA Adoption: France is aligning its framework with the upcoming Markets in Crypto-Assets Regulation
Timeline of Regulatory Milestones
| Year | Event | Description |
|---|---|---|
| 2019 | PACTE Law passed | Defined digital assets and introduced CASP registration |
| 2020 | First CASP licenses issued | Crypto firms begin registering with the AMF |
| 2021 | AML tightening | Enhanced KYC for crypto firms and anonymous wallet restrictions |
| 2023 | MiCA preparations | AMF begins aligning standards with EU-wide rules |
| 2025 | MiCA rollout | France expected to transition to MiCA compliance fully |
Resources
- Autorité des Marchés Financiers (AMF)
- Ministry of Economy and Finance
- French Crypto Tax Guide – DGFiP
- PACTE Law Overview (in French)
Notes
- Travel Tip for Crypto Users: Crypto is not commonly accepted by merchants, but fully legal for investment and use. Exchanges and wallets operate under local law.
- Local Adoption Trends: France is home to a growing crypto ecosystem, with several licensed exchanges and DeFi startups based in Paris.
- Language Notes: Most regulatory documents are in French; key AMF guidance is available in English.