FRANCE Law and Practice Contributed by: Estelle Rigal-Alexandre, Marie Frisch and Mohamed Bouzenada, Soulier Bunch
CASPs are required to implement robust internal pro- cedures for the identification, assessment and mitiga- tion of money laundering and terrorism financing risks, considering the nature of their services, the transac- tion profiles, and the characteristics of their clients. Key obligations include: • systematic verification of customer identity and ultimate beneficial ownership; • implementation of the EU Travel Rule requirements under the Transfer of Funds Regulation (TFR); and • enhanced monitoring for high-risk transactions, including those involving anonymous tools or cross-border payments. Internally, CASPs must designate an AML/CFT com- pliance officer, typically reporting to senior manage- ment, and ensure that relevant staff receive appropri- ate training on internal AML policies and procedures. 1.1.4 Smart Contracts There is no specific legislative or regulatory regime governing smart contracts under French law. As such, smart contracts are assessed under general contract law principles, primarily those set out in the French Civil Code. There are no judicial decisions on the enforceability of smart contracts to date. Based on the Civil Code, smart contracts must meet the standard legal requirements applicable to any contract, namely: free and informed consent of the parties, legal capacity, and a lawful and sufficiently certain subject matter, which could require additional contracts if the parties do not fully understand the underlying software program. In consumer-facing relationships, additional manda- tory rules from the Consumer Code may apply, par- ticularly in terms of information duties, withdrawal rights and fairness of terms, some of whose provi- sions appear to contradict the concept of DLT. In February 2025, a joint working group composed of the ACPR, the AMF and fintech stakeholders pub- lished recommendations exploring the potential for certifying smart contracts in the context of DeFi. The objective was to anticipate future regulatory develop-
ments and to define minimum standards for reliability and security in automated contractual execution. The group’s recommendations set out a series of prin- ciples for smart contract certification in DeFi, includ- ing: • compliance with development best practices; • mitigation of known vulnerabilities; • deterministic compilation; • public availability of source code; • application of the principle of least privilege; and • clear separation of critical functions. These principles were generally endorsed by industry contributors in a synthesis report published in July 2025, laying the groundwork for future regulatory ini- tiatives aimed at ensuring the integrity, auditability and legal reliability of smart contracts in financial applica- tions. 1.1.5 Industry and Trade Bodies France does not have any industry or trade bodies with formal regulatory or supervisory powers over blockchain or crypto-asset activities. Regulation and supervision remain the responsibility of public authori- ties, in particular the AMF and the ACPR. However, several industry associations and profes- sional organisations (such as ADAN, France Digitale, etc) contribute to the structuring of the ecosystem by promoting best practices, facilitating dialogue with regulators and supporting the development of block- chain-based projects. They do not impose binding rules on market participants. 1.2 Crypto-Assets 1.2.1 Property Considerations Legal Qualification of Crypto-Assets French law does not provide for a single, unified legal regime applicable to all crypto-assets as a category of property. Their legal qualification depends on their nature and regulatory status. For crypto-assets falling within the scope of MiCA, French law now provides a clearer framework. Amend- ments to the French Monetary and Financial Code introduced in 2024 recognise crypto-assets as intan-
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