Free consultation (30 minutes) about crypto license in France.
Initial consultation with our experts
Formation of a Ltd (SAS/SARL) company in France
Legal address in France
Bank account in France
AML-KYC policies and procedures in-line with the AMF expectations
Risk matrix, technical audits and other licensing requirements
On-going legal support for 1 year after licensing
Legal opinion
Cybersecurity assessment by a licensed ANSSI expert
SAFT agreements for token sale to a closed community (or friends and family)
STO declaration
Creation of a licensed crypto company from scratch in France.
Initial consultation with our experts
Formation of a Ltd (SAS/SARL) company in France
Legal address in France
Bank account in France
AML-KYC policies and procedures in-line with the AMF expectations
Risk matrix, technical audits and other licensing requirements
On-going legal support for 1 year after licensing
Legal opinion
Cybersecurity assessment by a licensed ANSSI expert
SAFT agreements for token sale to a closed community (or friends and family)
STO declaration
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Best company for Crypto Licenses! Kudos to the team for making the incorporation of our company really smooth
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They are undoubtedly top-level experts when it comes to licensing and registrations in the crypto and web3 industry. Highly recommend!
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Rengang excels at adapting to challenges and demonstrates a perfect understanding of our business needs.
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A fruitful cooperation
As a result of the fruitful cooperation with Rengang, Yellow Card obtained a VASP registration, fast and without any legal complications.
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PRICING AND PROCESS CRYPTO LICENSE FRANCE 2025
Crypto regulation/legislation in France
The Digital Assets Service Provider license in France, domestically known as “PSAN” (for Prestataire de Services en Actifs Numériques) and the French crypto framework are notorious for two reasons:
Binance has chosen it as its main European license;
French licensed companies can invest third party funds without an additional license.
Knowing an important success, applications to the French crypto license have flowed in 2023 and 2024, making it one of the most sought after license in Europe. Despite its important requirements and high standards of compliance, the French regulatory authorities have been officially encouraged to assist crypto companies into successfully registering. This means that the overall stance of the regulator is to enable business and to provide guidance to applicants, instead of being purely observant along the licensing process.
About the regulation of the French crypto license
Disclosed in 2020, the PSAN framework (standing for Prestataire de Services en Actifs Numériques – Digital Assets Service Provider), also referred to as the DASP license in English, is the crypto license in France. It is issued and regulated by the Autorité des Marchés Financiers (AMF), an independent regulatory body under the supervision of the Minister of Economy and Finance.
The crypto framework has been structured following the enforcement of the law “PACTE” in 2019, whose aim is to boost the IT and financial sectors in France. Subsequently, three legal texts are now forming the framework of the French crypto license:
Articles L54-10-1 through L54-10-5 (Chapter X “Digital Assets Service Providers”) of the Monetary and Financial Code (Book V, Title IV);
Articles L561-1 through L564-2 (Chapter I “Obligations Related to Anti-Money Laundering and Countering the Financing of Terrorism) of the Monetary and Financial Code (Book V, Title VI);
Book VII of the General Regulations of the AMF (“Token Issuers and Digital Assets Services Providers”).
The French crypto license has attracted numerous digital assets businesses in France. From major players such as Binance to local crypto startups, the DASP license in France is considered one of the most reputable in Europe. French crypto licensed companies can adhere to the domestic union for Web3 companies: ADAN, which gathers numerous projects, including 1inch, Bitpanda and Coinhouse.
The most interesting feature of the French DASP license is that it allows for investing third party funds (in crypto) without an investment license. This single fact makes France the perfect jurisdiction for small and medium crypto funds, as well as trading bot operators.
The AML legislation and KYC requirements have been brought in line with the upcoming MiCA license, which will be enforced in the European Union from June 30th of 2024. This means a rather strict regulation, but the AML officer of a French crypto business doesn’t need to reside in France or be a French citizen.
There are also no minimum share capital requirements, though it is expected from custodial companies to hold enough capital to ensure their solvability. A requirement that can be circumvented with the help of an insurance policy approved by the regulator.
Cryptocurrency is not considered legal tender in France.
What is the process to get the French crypto license?
The process to obtain a crypto license in France is relatively straightforward. There are explicitly set requirements that must be met before application. During the application, the AMF is in constant contact with the crypto project in order to communicate their expectations and what must be done in order to get the license.
The process is notoriously long, with a licensing timeline ranging from 9 to 18 months, due to the amount of applications and the recent strengthening of the framework.
To apply for a crypto license, a project doesn’t need to be established in France. Registering a French company is not mandatory to obtain the DASP license. However, it is considered as a positive by the regulator. The legal framework officially states that any company registered in the EU or the European Economic Area can apply for the French crypto license.
The French crypto licensed company must have a board of 2 directors at a minimum and appoint an AML officer that is competent with French law. None of them are required to live in France or hold a French passport.
A consequent set of documents shall be prepared. The documentation must include detailed information regarding customer onboarding and due diligence (“KYC”), enforcement of AML-CFT rules, risk assessment and management on the financial and technical levels, a cybersecurity assessment, financial projections and a detailed business plan, among other things.
A French licensed company can open a bank account in France or in other European jurisdictions.
What are the different crypto licenses available in France?
There are two types of crypto license in France: the DASP Registration (Enregistrement PSAN) and the DASP Certificate (Agrément PSAN). As of 2024, about a hundred companies have obtained the DASP Registration license, while a single one has obtained the DASP Certificate: Société Générale, a major French bank.
The DASP Registration allows for most types of crypto activities: custody of funds, buying and selling of digital assets, exchange services, etc. Staking and lending of cryptocurrency is also permitted with this license.
The DASP Certificate has higher requirements in terms of liquidity, personnel and documents to provide. It allows the same things as the DASP Registration, with the addition of being permitted to provide investment services in cryptocurrency. As of 2024, this is the one and only crypto license that allows the investment of third party funds and portfolio management. This stems from the important popularity in France of fixed income saving accounts, as the crypto markets can easily provide virtual assets services providers with opportunities to offer interesting returns to their clients.
FACTS ABOUT THE CRYPTO LICENSE IN FRANCE
Digital Asset Service Provider license in France (PSAN)
The minimum requirements for a crypto license in France are:
Company registered in France (SAS or SARL form), or in a European Union member state
2 directors in the founding team (minimum)
Appointed AML officer, having demonstrated an understanding of French law
AML-KYC processes and policies, in line with the French laws
Risk assessments, audits and procedures, on the financial and technical levels
Cybersecurity audit by an approved French professional hacker
Software stress test and detailed description
Hardware stress test and detailed description
Complete organizational chart
Detailed business plan
Certified documents of all founders, managers and officers of the company
The legality of cryptocurrency business in France
Until 2019, cryptocurrency businesses were in a gray zone in France. It was tolerated but easily sanctioned if it appeared that a law may have been violated.
In May 2019, as part of the 2019-486 law “On Growth and Transformation of Companies” (“PACTE” law), the PSAN (or DASP in English, for Digital Assets Service Providers) framework was created. The goal was to legalize and regulate crypto companies in France.
The first license was issued in March 2020 to Coinhouse, making it the number one French crypto exchange. Dozens of French and European crypto start ups followed.
DASP licenses in France are issued by the Authorité des Marchés Financiers (AMF), an independent institution for regulation of financial markets under the management of the Minister of Economy and Finances.
Facing a high number of applications and the upcoming pan-European MiCA regulation, the AMF brought additional requirements to the French crypto license. On July 1st of 2024, through amendments to the regulations, the AMF introduced the “reinforced DASP license” with additional requirements.
This makes the French crypto license one of the only options for crypto businesses willing to prepare the switch for the MiCA regulation, along with Estonia.
Cryptocurrency regulation in France
There are three legal texts that form the cryptocurrency regulation in France. Two of these texts are found in the Code Monétaire et Financier (Financial and Monetary Law). The third is a rule issued and enforced by the AMF directly.
The first one, the “DASP Chapter” (articles L54-10-1 through L54-10-5), defines what is a digital asset and what is a digital asset services provider. It is seconded by the “Chapter on Obligations Relative to Anti-Money Laundering, Countering the Financing of Terrorism, Gambling and Tax Fraud” (articles L561-1 through L564-2).
The third set of texts that regulates cryptocurrency in France is the Book VII of the General Regulations emitted by the AMF, “Token Issuers and Digital Assets Services Providers”. This book describes in detail the requirements and obligations to be met by applicants and holders of the French crypto license.
The current regulation was last changed in June of 2023 and the edits were enforced in July (with a grandfather right for already licensed companies until January 2024). The AMF wants to keep the current regulation until the enforcement of MiCA.
France Virtual Cryptocurrency Registry
The France Virtual Cryptocurrency Registry is public and can be found on the website of the AMF. It sums up every company who successfully secured the DASP license in France. The register incldes details such as the company name and number, the contact details and the crypto activities which it is allowed to provide, according to their registration.
We also find that the registry is composed of two lists, one for each kind of licenses issued in France: the DASP Registration (Enregistrement PSAN) and the DASP Certification (Agrément PSAN).
The French DASP register also includes information about formerly licensed companies, including the reason why they are not licensed anymore.
Crypto-authorization process in the France Virtual Currency Registry
We can describe the crypto authorization process in France as a hybrid licensing process. The AMF has described very clear requirements to be met. However, some elements will be assessed on a per case basis and require properly designed, non standardized legal documents, in order to successfully get the France crypto license.
The registration of France Company in Register of crypto currency companies
The French regulator, the AMF, is notorious for helping applicants with their file. There are little to no cases of refusal to be licensed, because the AMF is willing to assist crypto projects until they meet all their requirements.
On the down side, this means that certain applications can last for a very long time (more than a year and half). Registering a company in the register of crypto currency companies in France is known to be a long process.
Governmental Statements on Crypto in France
France has officially adopted a crypto-friendly stance through governmental statements, such as the Minister of Economy and Finances declaring that he wants France to be “the European powerhouse of crypto and DeFi”.
The governmental communication has been commented by the ADAN, a French association of cryptocurrency companies, as not always being in line with the evolution of the regulation. One may say that the French regulators are hesitant between offering an enabling framework and enforcing strong compliance and costs to the crypto companies.
A popular French saying goes “If it moves, tax it. If it still moves, regulate it. If it stops moving, subsidize it.”. We may say that in 2024, the situation is going from “regulate it” to “subsidize it”, with a level of requirements now in line with MiCA on one side, and a will to beat other European countries on this market on the other side.
Requirements to form a crypto licensed company in France
The regulator in France for crypto activities has set requirements, some of which are specific and some others that rely on business common sense. That is to say that depending on the intended activity and the company, some requirements will be assessed on a per case basis, such as the minimum share capital for example.
To obtain a crypto license in France, a crypto project must have a company registered in the European Union or the European Economic Area. It is not mandatory to form a French company in order to obtain the DASP license. If the application is carried out for a French company, then France should be the actual place of business of the project.
AML-CFT policies and procedures, as well as KYC processes and systems, must be compliant with the requirements set in the Monetary and Financial Law and the General Regulations of the AMF. The regulator expects to see a contract or a draft agreement with a KYC software provider (or a MVP if the software is developed in-house). The reporting features of the software will be assessed as well.
The company shall have at least one AML officer. This individual does not need to be French or reside in France, but must be familiar with French law.
An emphasis is made on the risk assessment and management. Every risk should be detailed in the company’s documentation.
The business plan must be detailed in a consequent documentation, that also shows financial projections, cases of emergency and business continuation plans, solvability, company workforce and other relevant information.
The founding team should demonstrate “honor and competence”. In concrete terms, this means providing a resume, filling a detailed form provided by the AMF and providing a certificate of non criminal record for all shareholders, directors and managers of the company.
There is no minimum share capital requirement. However, in case of custodial activities, the AMF expects the applicant to declare a consequential share capital for solvability. As an alternative, the crypto project can register with an insurance policy that shall be compliant with the AMF General Regulations.
Security of the systems and of the clients’ assets should also be maximized. The AMF requires applicants to stress test their security features by appointing a certified cybersecurity expert in France for an assessment.
The process of setting up a company for a cryptocurrency business in France
Company formation in France was made simple in the late 2010s. The minimum share capital has been brought down to 1 EUR and limited companies with simplified ownership have become popular.
To form a French company, one simply needs to gather notarized ID documents (passport, proof of residence & certificate of non criminal record). The incorporation process in France only takes 1 to 2 weeks and can be performed remotely.
A company formed in France that is willing to apply for the crypto license in France should have substance in France: an actual office space (can be a shared open space) and having part of the team working in France on a regular basis.
Taxation of cryptocurrency companies in France
France has set a simple framework for the taxation of cryptocurrency activities.
Trading proceeds are taxed the exact same way as any financial instrument, with a 30% flat rate on the plus value.
Mining activities are qualified as “non commercial profit” and subject to corporate income tax.
Other crypto activities are subject to corporate income tax on their profits.
The corporate income tax in France is 25% of the profits. The first 30,000 EUR of income are taxed at a lowered 15% tax rate.
Obligations of crypto companies in France
To maintain its French crypto license once the application is successful, a crypto project should acknowledge and enforce at all times the obligations laid out by the law and the regulator’s guidelines.
Most of the obligations are related to compliance with AML-CFT and KYC duties, and with ensuring the safety of customers’ data and assets. This means maintaining communication with the AMF at all times and reporting any suspicious customer and transaction, but also every attempt to breach into the systems of the company.
In the same logic, the crypto companies in France must ensure at all times that they have human and technical resources adapted to their activity and the services they provide. Its personnel should have been educated on the compliance and security aspects and receive yearly training on the matter.
It employs a compliance officer at all times (can be one of the directors) and should always have 2 directors in its board as a minimum.
Sanctions for violating France's crypto-business obligations
France distinguishes violations to the crypto business obligations and financial crime.
For breaching the regulation, the AMF can decide to revoke the license from the company. This license retrieval can be temporary or definitive, depending on the cases.
In case of issuing incorrect or misleading information, a company that is licensed or in the process of getting licensed can get its license revoked. The AMF will also publish a public statement on the wrongdoers, exposing their faulty communication and the facts related to it.
Committing financial crime in France is heavily sanctioned. The different crimes and their consequences on the wrongdoers are then relevant to the Penal Code and to the French court, which may imprison and fine heavily the criminal individuals.
France also regulates advertisement pertaining to financial services, including crypto. Only a company licensed by the AMF is allowed to advertise in France.
In a recent development, France also created a framework for influencers. Since September 2023, finance influencers are required to undergo a financial course in order to obtain a certificate. Crypto companies should then check that the influencers they work with in France have this certificate.
STEP-BY-STEP
How to obtain a crypto license in France
Obtaining the crypto license in France is a matter of preparation in the first place and of cooperation with the regulatory authorities in the second place. The process is famous for its length, due to the success of the framework and the important questioning performed by the authorities.
STAGE1 2-4 weeks
PREPARING THE CORPORATE ASPECTS OF THE OPERATION
Only a legal entity in the European Union or the European Economic Area can successfully obtain the French crypto license. This stage is therefore ground work for the project.
Incorporation of a French or European company (if required)
Preparation of certified documents of all team members
Declaration of source of funds and/or source of wealth of the company shareholders
Renting an office space in France or in the country of incorporation
Redaction of a detailed business plan for the next stage
Preparation of a detailed organization chart of the company
STAGE2 1-2 months
PREPARATION OF THE APPLICATION TO THE FRENCH CRYPTO LICENSE
The AMF has laid out detailed instructions on what the applicant should demonstrate in order to successfully start the process. To secure the French crypto license, the company must acknowledge and fulfill these requirements before the application.
Drafting of AML-KYC policies and procedures
Drafting of training material for current and future employees
Drafting of a risk matrix, risk assessment algorithms and software implementation
Cybersecurity audit by a certified French professional hacker (must be registered with ANSSI, the French cybersecurity agency)
2-years forecast from the start of the activity (evolution of the number of customers, of the volume of transactions if applicable, of the company’s workforce, of the workforce allocated to AML-CFT obligations, etc)
Team members are required to fill the managers/shareholders form issued by the AMF
STAGE3 8-18 months
ONGOING COMMUNICATION DURING THE PROCESS WITH THE REGULATOR
The application is carried out to the regulatory authorities and the process begins. In France, it can take a long time. The regulator will engage in a conversation with the team of the project and will conduct interviews and ask for details and additional documentation, depending on the intended activities.
Interview of team members (directors, AML officer, managers, devs)
Stress test of the software part (cybersecurity assessments and requirements)
Stress test of the hardware part and security of the premises of the company
Assessment of the risks pertaining to the data and assets of the customers
Professional insurance and share capital preparation according to potential request of the regulator
Demonstration of the conduct of the activity to the authorities
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