Crypto in France

France regulates crypto assets under the PACTE Law (Loi Plan d'Action pour la Croissance et la Transformation des Entreprises), enacted on May 22, 2019. This law created a two-tier regime: mandatory registration for crypto-to-fiat exchanges and custodians with the Autorité des Marchés Financiers (AMF), and an optional license for initial coin offerings (ICOs) and trading platforms. The AMF grants the 'PSAN' (Prestataire de Services sur Actifs Numériques) status, which became mandatory in December 2020. The Autorité de Contrôle Prudentiel et de Résolution (ACPR) oversees anti-money laundering (AML) compliance for registered providers. The Banque de France, as the central bank, monitors systemic risks and participates in ECB's digital euro research. In 2023, France aligned its framework with the EU's Markets in Crypto-Assets Regulation (MiCA), adopted on May 31, 2023, which fully applies from December 30, 2024. MiCA introduces a unified licensing regime across the EU, superseding national PSAN requirements for most activities. France's early adoption of crypto regulations has positioned Paris as a leading European crypto hub, attracting firms like Binance, which established a regional headquarters in Paris in 2022.

France taxes cryptocurrency gains under a flat 30% rate, comprising 12.8% income tax and 17.2% social contributions, as per Article 150 VH bis of the French Tax Code, introduced in the 2019 Finance Law. This applies to occasional traders; professional traders are taxed under the standard income tax scale (up to 45%) plus social contributions. Taxable events occur when crypto is sold for fiat currency or used to purchase goods/services. Crypto-to-crypto trades are not taxed, but gains must be calculated when converting back to euros. Taxpayers must report all crypto accounts on their annual tax return, with fines of €1,500 per undeclared account (€10,000 for non-cooperative jurisdictions). Losses can be carried forward for 10 years to offset future gains. Since 2023, crypto platforms must report user transactions to tax authorities under the DAC7 directive. The 2024 Finance Law introduced a simplified reporting form (Form 2086) to ease compliance.

France has over 3.4 million crypto users, representing approximately 5% of the population, according to the AMF's 2023 survey. Institutional adoption is growing: Societe Generale's crypto division, Forge, obtained a PSAN license in 2022 and launched a euro-pegged stablecoin (EURCV) in 2023. BNP Paribas and Credit Agricole have invested in blockchain projects, while the Paris-based crypto exchange Ledger raised $100 million in 2023. Retail adoption is driven by high savings rates and inflation concerns; a 2023 Ipsos poll found 24% of French adults considered investing in crypto. Use cases include remittances, particularly to Francophone Africa, and decentralized finance (DeFi), with French DeFi startup Morpho raising $18 million in 2023. The Paris Blockchain Week 2024 attracted over 10,000 attendees, underscoring France's role as a crypto hub.