Crypto License in France

Interest in cryptocurrencies and blockchain-technologies is rapidly increasing every day. This led to the fact that regulators and the state apparatus of jurisdictions needed to draw up and adopt certain rules and regulations regarding the regulation of cryptocurrencies, as well as any transactions and operations with them. Some countries actively support use of crypto-currencies, trying in every possible way to accelerate their mass integration. France is one of those jurisdictions.

Our company provides comprehensive assistance in crypto licensing worldwide. We’re ready to provide you with full support in obtaining permits for crypto-activities, in establishing a company and resolving any corporate issues and tasks. Our experience, knowledge and attention to each client is the key to a quick and successful result.

France crypto license requirements

In each country, crypto companies have determined requirements and law regulations that must be followed. France also has certain rules and standards that crypto structures must comply with.

As local crypto legislation says, to open a company in France, it is necessary to enlist the legal support of our company as a matter of priority. And then you won’t have to waste time correcting mistakes, as well as regretting wrong decisions made out of ignorance. In particular, opening a firm in France, businessmen have to do the following and go through the following stages:

• establishment of a firm within the jurisdiction;
• mandatory visits to the tax office, where entrepreneurs register the types of activities that their firms intend to provide. The tax number is assigned to the company directly upon registration, so it is not required to obtain it separately;
• registration of a bank account and the introduction of authorized capital. Despite the fact that there are no requirements for the minimum amount of authorized capital for most crypto enterprises, in order to ensure the trust of bankers, it is advisable to deposit 4,000-6,000 EUR into the account, and then use this money for the needs of the company;
• obtaining an extract from the Commercial and Industrial Register. Based on this statement, which is then received by the regulator, the bank account with the deposited authorized capital is unblocked.

Our experts are ready to provide you with comprehensive assistance at each phase of licensing. We will take care of all the most complex and controversial aspects of establishing a company, in particular, full interaction with the regulator and bringing the organization in line with the proposed regulations.

Our company also specializes in licensing companies operating in other commercial areas and directions. We provide support and professional assistance in obtaining a Forex broker license in Hong Kong, Malta, the UK, Cyprus and hundreds of other jurisdictions.

Types of cryptocurrency licenses in France

Country has one single license, which is an official permit for companies to carry out operations and transactions related to crypto-assets. According to local crypto law, next-mentioned are subject to this permission.

1. Storage of cryptocurrencies for third parties.
2. Buying or selling crypto assets for a currency that is legal tender.
3. Exchange of one type of cryptocurrency for another cryptocurrency.
4. Management of the Digital Asset trading platform.
5. Acceptance and transfer of orders for crypto assets for third parties.
6. Exchange of crypto-means for fiat.
7. Cryptocurrency portfolio management for a third party account.
8. Advice for Digital Assets clients.
9. Underwriting of digital assets.
10. Placement of digital assets.

Thus, with full compliance with the standards put forward, the company receives a permit that gives it the right to perform a wide range of deals. Organizations with such a permit get opportunities to be involved in various activities related to crypto-assets.

Advantages of crypto-licenses in France

France is known and attractive to capital-holders for forming loyal crypto-legislation and trying in every possible way to promote blockchain on its market. France applies two-tier regulation for crypto-business. All companies providing crypto-currency services must register as providers of crypto-currencies. However, they are not required to obtain a full license, as is done, for example, by traditional financial companies.

France has become an attractive option for crypto companies seeking stability amid regulatory uncertainty. The country’s well-defined legal and regulatory framework, which continues to evolve, offers a sense of predictability and has already attracted many crypto-companies. If we talk about the specific advantages of this space for crypto business, the following privileges should be highlighted, which are provided to interested investors.

1. France has made progress towards achieving legal certainty regarding crypto assets. This provided a basis for crypto companies to feel confident in the market and provide security for their customers, as well as attractiveness for potential partners.
2. Clarity of the country’s regulation and promising market potential.
3. High competitiveness of country and its ability to attract and retain crypto-talent.
4. Strict and clear adherence to the main principles of governance and compliance with anti-money laundering measures.
5. The authorities are determined to address concerns raised by the industry about impractical requirements and lengthy procedures.
6. Excellent reputation of the state among entrepreneurs and advantageous geographical location.
7. Modern infrastructure and high solvency of the population.
8. Affordable registration procedure, regardless of the chosen organizational and legal form.
9. Successful experience of many non-resident investors in the French market.

Thus, we note that France has obvious advantages that crypto entrepreneurs can take advantage of.

Requirements for persons planning crypto-currency activities

Entrepreneurs who intend to carry out activities related to crypto assets are subject to strict requirements, most of which are similar to other jurisdictions. One of essential points is that entrepreneurs need to necessarily register their company locally and enter it in local register. 

Required documents for registering a crypto-company in France

To obtain a crypto-license and successfully establish a company, it is necessary to prepare and form the following package of documents.

1. Detailed description of entrepreneurial activity.
2. List of covered crypto-currencies organization will work with.
3. Geographic distribution of activities, indicating the approximate or projected number of clients in each geographic area.
4. Correctly formed organizational structure, including resumes of persons who will be in charge of certain activities and management within the company.
5. A business-plan including the expected number and types of clients, and expected volume of operations for the next three financial years.
6. Description of the IT infrastructure.

In addition, the company must necessarily prepare and provide documents related to AML – combating illegal monetary means circulation in cryptosphere. Particularly, package of such documentation includes next-mentioned.

1. Classification of possible risks and methodology for their assessment, taking into account target customers, geographic coverage of activities, distribution channels for services and a range of crypto-products.
2. Personal details and resume of the person responsible for establishing and implementing AML policies and procedures.
3. Description of current AML procedures and policies.

Our experts will help you prepare the necessary documents correctly and quickly. We will take care of all the difficulties that you may have at this stage.

To get a crypto-license in France: general procedure

The general procedure for cryptocurrency licensing in jurisdiction is as follows and includes the following steps. It is worth noting that the state apparatus and the regulatory body have done everything possible to make this process intuitive for entrepreneurs and not become a significant obstacle for them on their commercial path.

1. Establishment of a company: selection of a name and its reservation, preparation of constituent documentation, taking into account the prospects for obtaining tax benefits and other preferences from the state, registration of a legal address and entering the company into the register. At this stage, the local tax number is also obtained. If it is planned to hire staff, application is sent to labor inspectorate.
2. Opening a bank account to deposit the authorized capital.
3. Publication of notice of the opening of the company in the official media.
4. Preparation and collection of necessary documents, and their subsequent sending to the regulator for obtaining official permission to conduct activities.

We will provide you with comprehensive assistance along the way. Among other things, our firm also works with the licensing of other structures in jurisdictions around the world, in particular, we help in obtaining a Forex broker license in Cape Verde, St. Vicente, Antigua and hundreds of other jurisdictions.

Taxation of French crypto-companies 

As of today, country has reduced the corporate tax rate, and now it is 25%. The standard VAT rate in France is 20%. Companies are also required to pay capital gains tax and tax levy on dividends. The rates are different and depend on some individual factors and nuances. In particular, it is worth noting that 88% of the capital gain will be exempt from tax on the disposal of shares if they have been in the possession of the seller for two years or more.

In addition, we note that if a company actively introduces new technologies on the territory of the country’s domestic market, increases employment, and so on, then it can fully count on tax benefits.

How much does a crypto license in France cost?

Cost of crypto-licensing is calculated individually in each case, as it depends on a number of specific factors and commercial nuances. Our experts will help you calculate the exact cost, determine the expected additional expenses and help optimize your budget as much as possible. We will not hide possible costs from you, because we work only honestly and transparently. This helps us achieve the best and most efficient results for our clients.