Crypto in France

France regulates crypto assets under the PACTE Law (2019), which introduced a voluntary licensing regime for digital asset service providers (DASPs) overseen by the Autorité des Marchés Financiers (AMF). The AMF grants two types of approvals: a simple registration for custody and fiat-crypto exchange, and an optional license for trading platforms. Since 2023, registration has been mandatory for all DASPs under the AMF's enhanced regime. The Autorité de Contrôle Prudentiel et de Résolution (ACPR) supervises banking-related crypto activities, while the Banque de France monitors systemic risks. With the EU's Markets in Crypto-Assets (MiCA) regulation applying from June 2023 (stablecoin rules) and December 2024 (full regime), France has integrated MiCA into national law, requiring CASPs to obtain authorization from the AMF. The AMF has approved major exchanges like Binance and Bitstamp under its DASP regime. France also pioneered the 'PSAN' status, which served as a model for MiCA. Enforcement actions include the AMF's 2022 warning against Bybit for illegal operations and the 2023 fine against Bitpanda for compliance failures.

France taxes cryptocurrency gains under a flat 30% rate (12.8% income tax plus 17.2% social contributions) for occasional traders, as per Article 150 VH bis of the French Tax Code, introduced in 2019. This applies to gains from the sale of crypto assets against fiat currency or goods/services. Taxpayers must report gains annually on Form 2086. A key threshold: total annual sale proceeds below €305 are exempt. For professional traders, gains are taxed as business income (BIC) with progressive rates up to 45% plus social contributions. Since 2023, crypto-to-crypto exchanges are not taxable events, but gains must be tracked for future fiat conversions. Losses can be carried forward for 10 years. The tax authority (DGFiP) requires detailed records of acquisition dates and prices. France has also implemented the OECD's Crypto-Asset Reporting Framework (CARF) from 2026, mandating CASPs to report user transactions to tax authorities.

France ranks among Europe's leading crypto markets, with over 3.4 million users (approximately 5% of the population) as of 2024, according to the AMF. Institutional adoption is growing: Societe Generale's Forge subsidiary issued a euro-pegged stablecoin (EURCV) in 2023 and received AMF approval as a DASP. BNP Paribas and other banks have piloted tokenized bonds on public blockchains. Retail trading volumes surged 40% in 2024, driven by Bitcoin ETF approvals and MiCA clarity. Paris hosts over 100 crypto startups, including Ledger (hardware wallets) and Sorare (NFT fantasy football), attracting €500 million in venture funding since 2022. The AMF reports that 12% of French adults have invested in crypto, with high engagement among 18-35 year-olds (25%). Use cases span payments (via Binance Pay and local exchanges), remittances, and DeFi, though DeFi usage remains niche. The 2024 Paris Blockchain Week drew 10,000 attendees, underscoring France's hub status.