France | DASP (PSAN) License & MiCA Transition
Overview
France regulates crypto activities under the PSAN / DASP framework (Prestataire de Services sur Actifs Numériques) supervised by the AMF (Autorité des Marchés Financiers). Introduced via the PACTE Law (2019) and operational since 2020, it is one of Europe’s most mature pre-MiCA regimes and has attracted major international players. Crypto is not legal tender in France, but France remains a flagship jurisdiction for structured, compliance-led crypto operations in the EU.
Framework & Legal Basis
- Legal foundation: Monetary & Financial Code (PSAN/DASP provisions) and AML/CFT obligations under the French AML framework
- Regulator: AMF
- Supporting texts: AMF General Regulation and AMF guidance on PSAN requirements, marketing, and governance
- Approach: Typically iterative and evidence-driven (documentation quality + operational readiness matter as much as the form)
PSAN Pathways (Pre-MiCA Structure)
| Tier | Name | Typical scope |
|---|---|---|
| Level 1 | PSAN Registration (Enregistrement) |
Core client-facing crypto services (commonly including custody/safekeeping and exchange-type services, depending on the declared perimeter), with strong AML/CFT expectations. |
| Level 2 | PSAN Optional Approval (Agrément) |
Enhanced prudential and governance posture—higher assurance for institutional counterparties; historically rare versus registrations. |
In practice, France has had a meaningful number of registered entities, while the optional approval path has been comparatively uncommon. For many firms, the strategic question is less “can we register?” and more “how do we build MiCA-grade governance and ICT controls early to avoid a costly refactor later?”.
Process & Timeline (Indicative)
1) Corporate Setup (≈ 2–6 weeks)
- EU/EEA entity typically required; French incorporation can be advantageous for local substance and stakeholder comfort
- Prepare UBO / source-of-funds and governance documentation
- Define service scope clearly (custody vs exchange vs platform vs ancillary services)
2) File Preparation (≈ 4–10+ weeks)
- AML/KYC/KYB policy suite and risk assessment methodology
- Safeguarding and client-asset controls (especially for custody)
- ICT / security framework (access controls, incident handling, BCP/DR, vendor oversight)
- Operational manuals, training plans, and evidence pack (logs, monitoring, governance minutes)
3) Supervisory Review (commonly months; can extend longer)
- Iterative Q&A and requests for information (RFIs)
- Interviews with management and control functions
- Validation of AML effectiveness and safeguarding measures
Typical planning range: many teams budget for 9–18 months end-to-end depending on service complexity, preparedness, and supervisory workload.
Core Requirements (Practical)
- Clear governance structure and fit-and-proper management
- Named AML function (and practical capability to operate it)
- Comprehensive AML/CFT controls: KYC/KYB, risk scoring, monitoring, escalation, reporting
- Safeguarding / custody procedures (segregation, access governance, incident response)
- ICT/security controls and vendor/outsourcing governance
- Operational evidence: policies alone are insufficient—France tends to value “proof of operation”
Operations & Ongoing Obligations
- Continuous AML/CFT monitoring and suspicious activity reporting via French channels (e.g., TRACFIN workflows, where applicable)
- Annual staff training and documented compliance reviews
- Marketing discipline: communications must be consistent with regulated status and consumer protection expectations
- Governance upkeep: key functions must remain staffed and independent where required
Sanctions & Enforcement
- Administrative measures, financial penalties, or withdrawal for non-compliance
- Public enforcement actions for misleading conduct or weak controls
- Potential criminal exposure for severe financial crime scenarios under French law
Registry
The AMF PSAN/DASP Register provides public visibility into registered providers and, where applicable, approved entities, including changes in status and removals.
MiCA Alignment (2025+)
France introduced a stronger “bridge” posture ahead of MiCA, effectively pushing many PSAN expectations closer to MiCA-grade CASP standards (governance, ICT, safeguarding, consumer protection). For operators that want a high-credibility EU base, France remains one of the most “institutional signaling” jurisdictions—at the cost of heavier preparation and longer review cycles.
Taxation (High Level)
- Corporate tax: ~25% headline rate (subject to thresholds and regimes)
- Individuals: commonly referenced flat tax mechanism on capital income (PFU), subject to personal situation
- Business income: taxed under standard corporate/operating income rules depending on structure
FAQ Highlights
- Is crypto activity legal? Yes—client-facing services require the appropriate regulated status.
- Do individuals need a license to trade? No; licensing targets service providers offering services to clients.
- Who can apply? Typically EU/EEA entities; local substance can materially improve credibility.
- Minimum capital? Historically not always a single fixed statutory number in the PSAN path; MiCA introduces clearer own-funds thresholds depending on service class.
- Processing time? Often long; plan conservatively and build an evidence-first compliance pack.
CryptoWisely.io Comment
Advantages: Mature rulebook, strong signaling to banks and counterparties, and a clean path into MiCA-grade controls.
Best suited for: Regulated exchanges, custody providers, and fintechs that can invest in governance, ICT, and AML maturity.
CryptoWisely insight: In France, the fastest route is usually tight scoping + operational proof. Build the monitoring, safeguarding, and ICT evidence early—then let the paperwork reflect reality.
Disclaimer: Informational only and not legal/tax advice. Always confirm current AMF guidance and EU MiCA requirements before proceeding.