FRANCE Law and Practice Contributed by: Estelle Rigal-Alexandre, Marie Frisch and Mohamed Bouzenada, Soulier Bunch
are generally not permitted to invest in crypto-assets due to eligibility and liquidity constraints. By contrast, certain AIFs may obtain exposure to crypto-assets, subject to compliance with diversification, valuation and risk management requirements. Exposure is often structured indirectly, including through investments in crypto-asset-related compa- nies, derivatives or structured products referencing crypto-assets. Fund managers with exposure to crypto-assets must ensure compliance with applicable regulatory require- ments, including: • risk management and valuation procedures adapt- ed to highly volatile assets; • custody and safekeeping arrangements, includ- ing where crypto-assets or related instruments are held; • disclosure obligations towards investors, particu- larly regarding risks associated with crypto-assets; and • where relevant, compliance with MiCA where the activity involves regulated crypto-asset services. 2.4 Token Issuance The French market for crypto-asset issuance remains relatively limited in practice, despite France having been one of the first jurisdictions to introduce a dedi- cated framework for initial coin offerings (ICOs) under the 2019 PACTE Law. While this optional visa regime provided a degree of legal certainty, it saw limited uptake. The entry into force of MiCA has fundamen- tally reshaped this landscape by introducing a harmo- nised and mandatory framework at EU level. As a rule, any public offering of crypto-assets or admission to trading within the European Union requires the publication of a white paper containing detailed information on the project, the rights attached to the tokens, the underlying technology and the asso- ciated risks. This white paper must be notified to the competent authority in the relevant member state, which in France is the AMF. Certain exemptions apply, in particular for offers below a specified threshold or addressed exclusively
to qualified investors. However, in most cases, issuers must comply with disclosure and governance require- ments designed to enhance investor protection and market transparency. Issuers are responsible for the content of the white paper and may incur liability in the event of inaccu- rate or misleading information. This represents a sig- nificant shift from the previous French regime, under which the AMF visa for ICOs was optional and primar- ily reputational. In addition, where the crypto-asset qualifies as an ART or an EMT, a significantly more stringent regime applies. Issuers must obtain prior authorisation from the competent authority and comply with prudential, governance and reserve requirements, including obli- gations relating to redemption rights and the manage- ment of backing assets. 2.5 Market Abuse MiCA introduced a dedicated framework addressing market abuse in crypto-asset markets, including insid- er dealing, unlawful disclosure of inside information and market manipulation, for crypto-assets admitted to trading. These rules are conceptually aligned with traditional financial market standards, though adapt- ed to the specific features of crypto-asset markets. They apply broadly to issuers, service providers and any person involved in crypto-asset transactions or related communications. In France, the AMF has already begun implementing this framework in practice and applying the ESMA guidelines of July 2025, which aim to strengthen the detection and prevention of market abuse. These guidelines require both national authorities and mar- ket participants to enhance surveillance mechanisms, including the monitoring of social media and the reporting of suspicious transactions or orders (STOR). In practice, the application of these rules raises chal- lenges, notably due to the fragmentation of trading across platforms and the difficulty of linking block- chain transactions to identifiable individuals. Overall, while the framework is now clearly estab- lished, its practical implementation is still developing
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