Crypto License in France

Following the EU-wide overhaul of the regulatory framework for crypto-assets, France is transitioning from the AMF-administered PSAN regime to a MiCA-compatible CASP authorization framework. The old registration system is extinct, and that will be supplanted by these strong, stricter rules. The rest would need to transform, aided by the transition period that’s built into this.

This briefing outlines France crypto-licensensing law and normative authorization provisions, PSAN-CASP transitional measures, and MiCA-duty and business-practice considerations. This is an attempt to provide accurate, up-to-date instructions for applying for a crypto license in France according to newly integrated regulatory requirements.

From PSAN to CASP in MiCA: France’s Regulatory Transition

Background History: PSAN/DASP regime

Once MiCA France crypto license regulation comes into force, France will be well ahead of this legislation, with its PACTE Law (2019), which introduced the concepts of Service Providers in Virtual Assets (DASP/PSAN in French) subject to financial market authority oversight. Those firms doing work related to France crypto exchange, custody or other agency activities in cryptos must demonstrate registration – or obtain enhanced authority on a risk-weighted basis. But that scheme was never supposed to be national in the first place – a small reason why it was fitful and temporary, pending an EU-wide standard. As for where it’s being applied – once the MiCA comes into force, that will replace the PSAN/DASP approach.

MiCA application and transitional period

Subsection of MiCA 2023/114 Crypto-license regulation

France implemented MiCA transposition orders and revised transfer provisions on AML-overseeing in domestic laws. The French also allow existing PSAN-holders (and applicants) a transition period to operate pursuant to the old regime until July 1, 2026, if they are properly applying for CASP permission ahead of schedule. New PSAN registration is a transitional status. Current PSANs may remain in use until the grace period expires, provided that they apply for CASP authorization, with a French transition period applying until 1 July 2026.

Cryptocurrency Exchange License in France

France crypto license register is a record of all entities allowed to operate within the scope defined by MiCA. Every business-structure with a legitimate France crypto license or France exchange license is listed on this public record that the appropriate financial agency keeps. Registration provides transparency, so investors and customers can check provider’s or trading platform’s legal status.

CASPs must meet ongoing prudential, operational resilience, and data-protection requirements. Only firms officially listed in the register may lawfully offer custody, trading, or exchange of digital assets within French territory, ensuring that the national crypto-market remains secure and institutionally supervised.

Extent of VASP License in France

What services require status of VASP license in the France holders

Under MiCA, a CASP in France will need to be verified in order to carry on any of next-mentioned business-activities:

• Storing or managing such crypto-assets for clients;
• Implementing trading platforms operations;
• Conversion between crypto and fiat or among cryptos;
• Order execution for customers;
• Receiving and transmitting of orders in crypto;
• Providing crypto-assets advice;
• Portfolio management in crypto;
• Crypto-asset transfers for account of customers;
• Crypto-assets placing or issuance.

If/When business-activities carries out in France, that activity should be registered or approved by business-entity as CASP and not under the former PSAN regime.

Obligations mandatory to all CASPs

1. Should be established as a legal organization with statutory seat in an EU or EEA country.
2. There must be 1 director or executive with EU-residency and place of efficient EU management.
3. Comply with a code of behavior: be honest, transparent, and fair; be open about costs, risks, and conflicts of interest.
4. Client asset segregation and strong protections against misuse and insolvency.
5. Preserve complaint responses, controls, cybersecurity, and audit trails and records.
6. Adhere to anti-money-laundering and counter-terrorism-financing obligations, such as travel-rule requirement points.

Additional rules by activity

Based on service in question (e.g., trading, custody, and/or retail offering of crypto-assets), more rules apply – best execution and fair pricing disclosures, order handling priorities, and management of conflicts of interest. For stablecoins, it could be that banking and prudential authorities weigh more than markets authority.

France Crypto License Requirements & Application Process (France)

Preparatory steps and compliance build-out

Organizations will need to integrate governance, internal policies, infrastructure, and security architecture needs of MiCA-requirements prior to application.

There’s a streamlined process for those who were PSAN registered or had an enhanced France cryptocurrency license already since the regulator can often pull in existing analysis if not much has changed.

Submission of application for crypto license France

Crypto-groups can establish early certainty and pre-file their CASP authorization applications by July 1, 2024, which precedes MiCA’s full entry into force. Full packs would entail, among other things, company statutes, governance information, financial models, evidence of capital status or risk policy (for banks), internal control system and cybersecurity material, as well as action plans to protect customers.

Formats and thresholds for these submissions are described in technical mechanisms under MiCA.

Timeline and decision

Review timeline is usually months – complexity of the business-model, readiness for compliance, and regulatory workload are the key factors. Once MiCA applies in full, regulator has to approve or deny authorization within fixed timelines.

If application is denied, provider isn’t authorized under law to continue beyond transition.

Strategic and Operational Considerations

EU passporting and France’s stance

Under MiCA, a CASP-licensed in one EU country can offer its services to others. But French regulators have suggested passports could be restricted if regulatory arbitrage or the absence of effective supervision is suspected.

Capital and financial prerequisites

Minimum normative standards list other than the range of thresholds by service differ, but CASP-applications should evidence sufficient base capital, solvency, and sound financial forecasts.

Residency, incorporation, and structuring

Non-EU entities are usually required to create a French or EU legal entity or appoint an EU-located director in order to demonstrate the presence of proper management in Union.

Risks and timelines

Failure to apply or non-conformity will be subject to prohibition of operation after July 2026. Entities should not expect final standards and supervisory convergence to remain static during the transition.

Summarize

MiCA introduction of represents a major change in French regulation of crypto-asset services. Such move from PSAN registration to CASP authorization brings about consistent normative points, additional consumer guards, and more robust supervisory oversight. Businesses looking to continue or start operating in France will need to review their structures, correspondence programs, and licensing arrangements in light of new regulatory landscape.

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Where necessary, clients receive assistance in all areas of compliance, as well as due diligence, after their permits are granted to ensure smooth and legitimate operation.

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