FRANCE Law and Practice Contributed by: Estelle Rigal-Alexandre, Marie Frisch and Mohamed Bouzenada, Soulier Bunch
and is expected to be progressively clarified through supervisory practice. 2.6 Non-Compliance The French regulators have adopted a strict enforce- ment stance. In September 2022, following an on-site inspection conducted by the ACPR, the AMF ordered the delisting of a registered PSAN following serious breaches of AML/CFT obligations, including failure to carry out adequate KYC checks and lack of enhanced scrutiny of higher-risk transactions. In early 2025, in co-ordination with other EU mem- ber states, the Juridiction interrégionale spécialisée (JIRS), a specialised French criminal court dealing with organised crime, opened a formal investigation into Binance for alleged breaches committed between 2019 and 2024. The preliminary findings suggest the following: • failures to comply with AML/CFT obligations, in particular, the lack of proper KYC procedures – these deficiencies allegedly facilitated the launder- ing of funds derived from various criminal activities, including narcotics trafficking and tax fraud; and • unlawful promotional communications targeting French residents or entities prior to Binance’s offi- cial registration as a PSAN (the pre-MiCA national regime) – these marketing efforts were reportedly carried out through influencer partnerships and online advertising campaigns on social media platforms. 3. Licensing and Set-Up Requirements 3.1 Licensing Requirements French Regime Prior to MiCA and Grandfathering Period France was one of the first jurisdictions in Europe to introduce a regulatory framework for crypto-asset ser- vice providers through the regime applicable to PSAN, established by the PACTE Law of 2019. Prior to MiCA coming into force, France had already established a two-tiered regulatory framework for PSANs under the 2019 PACTE Law. This framework combined:
• mandatory registration with the AMF; and • an optional licensing regime, which saw little adop- tion in practice. To anticipate MiCA, the French parliament enacted the DDADUE Law in March 2023, introducing a strength- ened registration regime for PSANs. This reform par- tially mirrored MiCA requirements and aimed to ease the transition to the new EU-wide regime applicable to CASPs. Under the applicable grandfathering clause, PSANs that were registered, licensed or operating legally without registration before 30 December 2024 may continue their activities until 1 July 2026, or until they are granted CASP status under MiCA, whichever occurs first. To facilitate this transition, France has introduced a simplified authorisation procedure ena- bling eligible PSANs to migrate to CASP status more Following the adoption of MiCA and the implemen- tation of the French Ordinance of 15 October 2024, any entity intending to offer crypto-asset services on a professional basis in France must obtain a CASP licence in accordance with Article 59 of the MiCA Regulation, unless expressly exempted. efficiently during the transitional period. Current Licensing Regime Under MiCA France has designated both the AMF and the ACPR as competent supervisory authorities ( 2.1 Regulators and International Alignment ). Since January 2025, more than 30 companies have been authorised as CASPs in France under the new framework, reflecting strong market interest in regula- tory compliance and early positioning under the MiCA regime. Scope of Licensing Requirements Under MiCA, licensing requirements apply to a broad range of crypto-asset services, including: • custody and administration of crypto-assets on behalf of third parties; • operation of trading platforms; • exchange of crypto-assets for funds or other crypto-assets;
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