France Establishes Clear Crypto Regulations by 2025

France has established itself as a leading crypto-friendly nation in Europe by 2025, thanks to its robust tech ecosystem and clear regulatory framework. The country's journey towards comprehensive crypto regulations began with the PACTE Law in 2019, which legalized crypto trading and ownership. Since then, France has introduced several new laws to regulate the crypto industry effectively.

One of the most significant developments is the implementation of the MiCA (Markets in Crypto-Assets) Regulations in 2025. This framework addresses risks of financial instability and consumer exploitation by establishing a unified regulatory structure for crypto assets. The Autorité des Marches Financiers (AMF), France's financial regulatory body, is tasked with supervisory reviews, spot checks, and investigations to ensure compliance with MiCA rules. The AMF oversees exchanges, custodians, wallet providers, and Asset Referenced Tokens (ART), a type of stablecoin backed by fiat currencies or commodities.

In July 2025, the Anti-Money Laundering Authority (AMLA) and Counter-Financing of Terrorism (CFT) compliance guidelines came into full effect. These guidelines include detailed customer due diligence measures to prevent crypto-related risks. Additionally, the DDADUE Law, introduced in May 2025, provides a legal framework for pledging crypto assets through the Financial Code, inspired by the security regime. Under this law, Crypto Asset Service Providers (CASPs) must obtain a certificate of pledge from MiCA, and crypto assets must be formalized through a signed declaration by the asset owner to mitigate third-party risks.

The Transfer Fund Regulation (TRF), which has been in force since 2023, was fully applied in January 2025. This regulation mandates that the transfer of crypto assets exceeding EUR 1,000 between a CASP and a self-hosted wallet is subject to reporting requirements. Furthermore, a transitional period from December 30, 2024, to June 30, 2026, allows existing CASPs to continue operating under their current national regulations while transitioning to the new MiCA framework.

The French government has shown strong support for the crypto industry. The AMF has backed the Saving and Investment Union Project, which includes a cross-border crypto asset platform. In March 2025, the French State Bank Bpifrance announced a $27 million crypto fund investment in digital assets, an initiative supported by the French federal government. Additionally, the French Interior Minister Bruno Retailleau has emphasized the importance of enhancing security and addressing risks in the crypto sector, aiming to increase transparency in crypto transactions, financial stability, and consumer protection through MiCA.

In terms of taxation, crypto assets in France are treated similarly to general stocks, bonds, and other capital assets, making them taxable. The General Directorate of Public Finances (DGFiP) mandates all taxes. Tax-free events include the exchange or swapping of crypto assets, gifting crypto assets, ICOs and IEOs, Airdrops, DeFi, margin trading, and NFTs. Income tax for 2025, due on April 10th for the 2024 fiscal year, applies to capital gains from crypto-to-fiat conversions. Occasional investors face a 30% tax rate on capital gains, while professional traders may be taxed up to 45% on net profits. Mining activities are taxed up to 45% under the BNC regime, with a micro BNC regime available for small miners. Capital gains from crypto are taxed if they exceed 305€ per year, converted into fiat currency.

As of 2025, all CASPs are required to obtain a license from MiCA to operate within the EU. The process involves registering with the AMF and complying with an enhanced due diligence framework aligned with MiCA. CASPs must also report any suspicious activity to Tracfin, France’s financial intelligence unit, and comply with AML/CFT regulations. The AMF, along with Scorechain, facilitates the compliance process by providing necessary tools.

Crypto adoption in France is on the rise, with a user penetration rate expected to reach 23.96% in 2025, growing to 24.52% by 2026. The number of crypto users is projected to reach approximately 16.37 million by 2026. The current cryptocurrency market in France is expected to reach US$3.0 billion, with an average revenue per user of up to $187.2. The market is growing at a rate of 2.69% annually, and by 2026, the revenue market is expected to reach US$3.1 billion. The French government has not publicly disclosed any crypto holdings but focuses on creating a welcoming and regulated environment for blockchain and cryptocurrencies.

In conclusion, the French government is implementing new crypto laws to ensure transparency, security, and consumer protection. Through the MiCA framework, France aims to build clear and reliable rules for the industry, positioning itself as a leader in the global crypto landscape.