FRANCE Law and Practice Contributed by: Estelle Rigal-Alexandre, Marie Frisch and Mohamed Bouzenada, Soulier Bunch
• asset-referenced tokens (ARTs), which aim to main- tain a stable value by referencing multiple assets or rights; • e-money tokens (EMTs), which are pegged to a single official currency; • utility tokens, which provide access to a good or service; and • a residual category covering all other crypto- assets. This classification is now the cornerstone of the regu- latory framework, as it determines the applicable legal regime, including authorisation requirements and ongoing obligations. In parallel, certain crypto-assets may fall outside the scope of MiCA where they qualify as financial instru- ments under Directive 2014/65/EU (MiFID II). In such cases, the traditional financial regulatory framework applies in full. French regulators follow a substance- over-form approach, under which a token granting standardised economic rights and capable of being traded on capital markets may be requalified as a transferable security, irrespective of its technical form. In practice, the qualification of a crypto-asset remains a case-by-case assessment. Market participants are expected to conduct a thorough legal analysis, taking into account the token’s structure, rights and actual use. This classification may evolve over time, particu- larly where a token initially issued as a utility token is later traded or used for investment purposes. Applicable Regulatory Framework France was among the first jurisdictions to introduce a dedicated regulatory framework for digital asset ser- vice providers through the 2019 PACTE Law, which created the status of prestataires de services sur actifs numériques (PSANs). This regime combined manda- tory registration for certain services with an optional licensing framework. Since the adoption of MiCA, the regulatory landscape has shifted towards a fully harmonised European framework. Crypto-asset service providers (CASPs) must now obtain an authorisation under MiCA in order to provide services on a professional basis within the European Union.
France has implemented a transitional regime allow- ing PSANs registered before 30 December 2024 to continue operating until 1 July 2026 or until they have obtained a CASP authorisation, whichever occurs first. During this period, France operates a dual framework in which legacy PSANs coexist with newly authorised CASPs. In practice, market participants are actively transition- ing towards MiCA authorisation, as the CASP licence will soon become the sole applicable regime. This transition is accompanied by an increase in regula- tory scrutiny. Regulated Activities MiCA adopts an activity-based approach to regula- tion, whereby authorisation is required depending on the nature of the services provided. The main regu- lated crypto-asset services include: • custody and administration of crypto-assets on behalf of third parties, including the control of pri- vate cryptographic keys; • operation of trading platforms for crypto-assets; • exchange services between crypto-assets and fiat currencies or between crypto-assets; • execution of orders on behalf of clients; • placing of crypto-assets; • reception and transmission of orders; and • advice on crypto-assets and portfolio manage- ment. This functional approach requires firms to carefully map their activities against the regulatory categories defined under MiCA. In practice, a single business model may involve multiple regulated services, each triggering specific licensing and compliance require- ments. Restricted and Prohibited Activities While MiCA does not establish a general prohibition on crypto-asset activities, it effectively restricts certain practices by imposing strict regulatory conditions. First, the provision of crypto-asset services without the required authorisation is prohibited. Entities that actively target French clients must therefore ensure compliance with MiCA licensing requirements.
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