FRANCE Trends and Developments Contributed by: Hubert de Vauplane, Arnaud Grünthaler and Hugo Bordet, Morgan, Lewis & Bockius LLP
France integrates crypto-assets into mainstream financial law Another significant trend in 2026 is the progressive integration of crypto-assets into traditional financing and financial-law structures. Following MiCA implementation reforms and pro- posals led by the Haut Comité Juridique de la Place Financière de Paris (HCJP), France introduced a dedicated legal regime governing the pledge ( nan- tissement ) of crypto-assets under Article L.226-5 of the French Monetary and Financial Code. The new framework, inspired by the regime applicable to finan- cial securities accounts, aims to facilitate the use of crypto-assets as collateral within regulated financing structures and tokenised market infrastructures; also allowing the use of smart contracts for this purpose. At the same time, the Autorité des Marchés Financi- ers (AMF) adapted its doctrine on complex financial products to account for the emergence of structured products indexed to crypto-assets following the entry into application of MiCA. The AMF acknowledged that certain crypto-linked financial products may no longer automatically fall within its doctrine relating to “par- ticularly complex” financial instruments, while main- taining enhanced investor-protection requirements for products marketed to retail investors. These developments illustrate a broader institutional trend: crypto-assets are progressively being integrat- ed into mainstream financing, collateralisation and market-finance arrangements. The French approach therefore differs from earlier regulatory discussions focused primarily on investor protection or speculative trading. Crypto-assets are now increasingly treated as financial assets capable of being incorporated into secured financing structures, custody arrangements and institutional market infrastructures. Crypto regulation increasingly converges with traditional financial supervision Another major development concerns the growing convergence between crypto regulation and tradi- tional financial supervision. The ongoing Third EU Payment Services Directive (PSD3) and EU Payment Services Regulation (PSR)
reforms increasingly clarify that certain electronic money token (EMT)-related services and crypto activi- ties functioning as payment services may fall within the scope of EU payments regulation. In February 2026, the Autorité de Contrôle Prudentiel et de Résolution (ACPR) clarified that certain CASPs providing custody or transfer services involving EMTs may require payment institution authorisation in addi- tion to MiCA authorisation. The implementation of the EU Anti-Money Launder- ing (AML) package also generated significant reac- tions from the French crypto industry. French market participants, including ADAN, criticised aspects of the Anti-Money Laundering Authority’s (AMLA’s) draft regulatory technical standards relating to “business relationships” and customer due diligence. Industry actors notably argued that the proposed framework risks applying traditional banking AML concepts too broadly to CASPs, particularly by poten- tially treating simple account registration as sufficient to trigger full customer due diligence obligations even in the absence of transactional activity. More broadly, these developments demonstrate that stablecoins and crypto-asset services are increasingly viewed through the lens of regulated payment and financial infrastructure rather than purely speculative crypto-market activity. This convergence between crypto regulation and traditional financial supervi- sion is likely to remain one of the defining features of the post-MiCA environment in France and across the European Union. France develops a governance-based approach to decentralised finance France also explored regulatory approaches adapted to decentralised finance (DeFi). In 2025, the ACPR and AMF published the conclusions of a joint work- ing group and public consultation concerning the possible certification of smart contracts used in DeFi applications. The work explored voluntary certifica- tion mechanisms aimed at improving code security, governance transparency and operational reliability.
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