France
Region: europeLegal
Cryptocurrency is fully legal in France. France was among the first EU countries to establish a formal licensing regime for crypto service providers under the PSAN framework, and now operates under the EU-wide MiCA regulation. The Autorité des marchés financiers (AMF) oversees all crypto asset service providers.
Regulatory Framework
Trading & ownership
Legal and regulated. Retail and institutional investors may freely buy, sell, and hold crypto assets. France implemented the PSAN (Prestataires de Services sur Actifs Numériques) registration framework in 2019, which requires crypto service providers to register with the AMF. From 2024, France transitioned to the EU MiCA (Markets in Crypto-Assets) regulation, which provides a unified EU-wide licensing framework.
Payments & Commerce
Legal. Merchants may accept cryptocurrency as payment. Crypto-to-fiat conversions are treated as taxable disposals.
Mining Operations
Legal. Cryptocurrency mining is permitted without specific licensing requirements. Mining income is treated as commercial or non-commercial income for tax purposes, depending on the activity scale.
Exchange Licensing & AML/KYC
PSAN registration is mandatory for crypto exchanges and service providers operating in France. From 2024, EU-wide CASP (Crypto-Asset Service Provider) licensing under MiCA applies. AML/CFT compliance is required under EU AMLD5 and AMLD6 directives. KYC: Mandatory for all regulated service providers. CASPs must conduct full KYC/CDD procedures including identity verification and proof of address for all customers.. AML: Strict AML requirements apply under EU AMLD6 and MiCA. Providers must file Suspicious Transaction Reports (STRs) with Tracfin, France's financial intelligence unit.
Taxation
Capital Gains Tax
Gains from disposal of crypto assets are subject to the flat tax (Prélèvement Forfaitaire Unique, PFU) of 30% (12.8% income tax + 17.2% social contributions). This applies to occasional traders. Professional traders are taxed under the BIC (Bénéfices Industriels et Commerciaux) regime at progressive income tax rates. As of 2023, losses from crypto can be offset against gains of the same year.
Income Tax (Staking/Mining)
Staking and mining rewards are treated as non-commercial income (BNC) or commercial income (BIC) depending on scale. They are taxable at the time of receipt at the fair market value, and subsequently subject to capital gains tax at disposal.
VAT & Sales Tax
Crypto-to-crypto exchanges are exempt from VAT. Crypto-to-fiat conversions by exchanges are treated as financial services and generally exempt. NFT transactions may attract VAT depending on classification.