Crypto License in France

Ultimate Guide to Obtaining a Crypto License in France 

As the global crypto economy continues to mature, France has emerged as one of the most attractive jurisdictions in the European Union for blockchain companies, crypto exchanges, and fintech startups. Whether you’re launching a DeFi platform, a digital asset fund, or a centralized exchange, acquiring a crypto license in France is a pivotal step toward achieving regulatory compliance, investor trust, and long-term growth in the EU market.

Why Choose France for Your Crypto Business?

France has taken a proactive stance in regulating crypto and digital assets. Since the introduction of the PACTE Law (Plan d’Action pour la Croissance et la Transformation des Entreprises) in 2019, France became one of the first European countries to implement a comprehensive legal framework for virtual asset service providers (VASPs), known locally as PSAN (Prestataires de Services sur Actifs Numériques).

Key Advantages of Licensing in France:

• Full Legal Recognition: Crypto businesses are legally acknowledged under French law and can enter into enforceable contracts, open corporate bank accounts, and access legal remedies.

• EU Passporting: With the Markets in Crypto-Assets Regulation (MiCA) coming into force in 2025, a license in France can serve as a passport to operate across all EU member states without the need for separate local approvals.

• Government Incentives: France offers grants and tax credits for tech and fintech R&D activities, making it a favorable destination for innovation.

• Access to Banking and Payment Systems: PSAN-registered firms often face fewer issues opening bank accounts and working with regulated payment providers.

• Clear Taxation Rules: Unlike some jurisdictions, France provides detailed guidance on how different types of crypto activities are taxed, improving transparency for startups and investors.

Types of Crypto Licenses in France

France offers two types of regulatory status for crypto businesses:

1. Simple Registration (Mandatory)

This is a minimum requirement for companies offering:

• Custodial wallet services (holding private keys on behalf of clients)

• Crypto-to-fiat exchange services

The registration ensures compliance with anti-money laundering (AML) laws and basic consumer protection standards.

2. Full PSAN License (Optional but Highly Recommended)

This optional status is for businesses offering more advanced or high-risk services, such as:

• Crypto-to-crypto exchange

• Derivatives and margin trading

• Digital asset management

• Initial Coin Offerings (ICOs)

• Financial advisory related to crypto

Obtaining the full PSAN license adds significant credibility, improves institutional client access, and ensures a smoother transition into the MiCA regulatory regime starting in 2025.

Who Regulates Crypto in France?

Two key regulators oversee crypto activities:

• AMF (Autorité des Marchés Financiers): Handles licensing, enforcement of AML/CFT (anti-money laundering and counter-terrorist financing) compliance, investor protection, and transparency requirements.

• ACPR (Autorité de Contrôle Prudentiel et de Résolution): Supervises entities that offer banking, insurance, or payment services in connection with crypto, such as neobanks or hybrid fintech firms.

Step-by-Step Guide to Obtaining a Crypto License in France

Step 1: Define Your Business Activities

Before initiating the licensing process, clarify your business model:

• Are you offering crypto custody?

• Do you facilitate crypto-fiat exchange?

• Are you launching an exchange, trading platform, or crypto fund?

Your answers will determine whether you need a simple registration or a full PSAN license.

Step 2: Set Up a Legal Entity in France

To apply for registration, your business must be legally established in France. Common structures include:

• SAS (Société par Actions Simplifiée): Offers flexible corporate governance and is ideal for startups.

• SARL (Société à Responsabilité Limitée): A limited liability structure suitable for smaller operations.

Requirements include:

• A physical business address in France (virtual offices generally not accepted)

• A French bank account

• A local representative/director

Step 3: Build Your AML/KYC Compliance Program

Compliance with AMLD5 and French AML/CFT regulations is non-negotiable. You must prepare and implement:

• KYC (Know Your Customer) procedures

• CDD (Customer Due Diligence) policies

• Risk assessment methodologies

• Suspicious activity monitoring and reporting systems

• Internal staff training procedures

These documents must demonstrate that your company can effectively prevent illicit activity on your platform.

Step 4: Prepare and Submit PSAN Application to AMF

Your application must include:

• Corporate bylaws and Articles of Association

• Description of crypto services provided

• Full AML/CFT and compliance documentation

• Internal control systems and governance model

• Technical and cybersecurity infrastructure overview

• Details of the management team and beneficial owners

• Three-year business and financial forecast

All documents must be submitted in French, or accompanied by certified translations.

Step 5: AMF Review and Feedback

The AMF will review your application in depth. The review timeline is:

• Simple Registration: 1–2 months

• Full PSAN License: 3–6 months, depending on complexity

You may receive feedback or clarification requests, so prepare for several rounds of correspondence. Hiring an experienced legal advisor can accelerate this process significantly.

Documentation Checklist

• Articles of incorporation and corporate bylaws

• Certified ID copies of directors and shareholders

• Business plan and market analysis

• Risk management framework

• Proof of funds and financial solvency

• Cybersecurity and IT infrastructure policies

• AML/KYC policies and internal controls

Timeframe and Costs

Estimated Timeline:

Estimated Costs:

Taxation of Crypto Businesses in France

Crypto taxation in France is relatively well-defined:

• Corporate Tax: 25% (as of 2025)

• VAT: Exempt for crypto exchange services

• Capital Gains Tax: Applies to specific tokens and investment instruments

• Payroll Taxes: Applicable if hiring employees or contractors

Companies can apply for tax rulings from the French tax authority (DGFiP) to clarify their obligations based on their unique business model.

AML, KYC, and Regulatory Obligations

France mandates strict compliance with European and national AML rules:

• AMLD5 and future AMLA regulations

• Identification of beneficial owners (UBOs)

• CDD and enhanced due diligence (EDD)

• Ongoing transaction monitoring

• Mandatory suspicious transaction reports (STRs)

• Compliance training for staff

Failure to comply can lead to significant fines, loss of license, or criminal liability.

MiCA Regulation and EU Passporting

The MiCA Regulation, coming into force in 2025, aims to standardize crypto regulation across all EU states. France’s PSAN framework is designed to align closely with MiCA, making the transition easier.

Key Benefits of MiCA Alignment:

• Passporting rights: Operate across the EU without re-registration

• Investor confidence through harmonized disclosure requirements

• Better protections for retail and institutional investors

• Competitive edge through early adoption

Benefits of Holding a PSAN License

• Operate legally in France and the EU

• Easier access to banks and financial partners

• Recognition by investors and counterparties

• Eligibility for government grants and innovation credits

• Competitive differentiation in a crowded market

• Faster transition to MiCA compliance

Common Challenges & Solutions