Crypto Regulations in France
Before diving into trading on the best crypto exchange in France you might have chosen, it's important to understand the regulatory landscape of digital assets in the country and how they are treated regarding taxes.
Let's start with the main question – Is crypto legal in France?
Yes, crypto is legal in France, so its residents are allowed to buy, sell and store them without breaking the law.
Overall, France crypto landscape is dynamic, propelled by the government's support for blockchain-based technologies. The country has emerged as a central hub for crypto and blockchain companies, with several French startups expanding internationally.
This growth is attributed to the adoption of the PACTE Act in 2019, which introduced the first comprehensive regulatory framework for ICOs and digital asset service providers (DASPs) in France[1].
Under this framework, DASPs are required to register with the French Financial Markets Authority (AMF) and comply with regulations related to custody, trading, and exchange of digital assets. Failure to comply with registration requirements can result in penalties, including imprisonment and fines.
Furthermore, the regulatory framework for DASPs has been strengthened, with the AMF empowered to take precautionary measures and suspend registrations deemed a threat to market stability. A new registration statute has been introduced, with mandatory registration for DASPs since January 1, 2024.
Companies must ensure compliance with anti-money laundering regulations, establish secure IT infrastructure, adopt internal control systems, and adhere to additional procedures specified by the regulator.
Moreover, optional licensing is available for DASPs, too, providing marketing advantages and facilitating future compliance with the Markets in Crypto-Assets Regulation (MiCA) adopted by the EU Parliament[2].
MiCA imposes requirements on crypto asset service providers, including AML / CFT compliance, cybersecurity measures, market abuse procedures, and sustainability standards.
France's regulatory landscape also covers ICOs, with issuers required to obtain a visa from the AMF, ensuring compliance with disclosure and AML / CFT requirements. Security token offerings (STOs) are subject to separate regulations, and tokens deemed financial instruments are ineligible for ICOs.
Regarding France crypto taxes, capital gains from digital asset sales are taxed for individuals and companies by Direction Générale des Finances Publiques (DGFiP).
Gains from crypto could face taxation of up to 30% under the Flat Tax (PFU) regime for casual traders. For active traders, these gains might be treated as non-commercial profits (BNC) and taxed at a maximum rate of 45%. Similarly, earnings from crypto mining are considered non-commercial profits and are subject to the Income Tax of up to 45%.
Looking ahead, France aims to enhance regulatory cooperation at the EU level, implement measures such as the DLT Pilot Regime and revised Transfer of Funds Regulation, and address emerging issues like the regulatory status of DeFi protocols.
Overall, France crypto tax and regulatory ecosystem reflects a balance between regulatory oversight, innovation support, and international collaboration, positioning the country as a key player in the global crypto industry.
Best Crypto Exchange in France: Evaluation Criteria
Now that you've learned about the regulatory status of France's crypto ecosystem, I want to discuss the main factors that make an exchange enter many "Best crypto exchange in France" lists. This will help you if you didn't find the best fit in the list above and plan to go on your own crypto exchange hunt.
- Regulatory Compliance. For a company to earn the title of the best crypto exchange platform France residents can access, it must comply with the country's crypto regulations. This includes registering with AMF (for local exchanges) or simply complying with the AML / KYC regulations (for global exchanges).
- Security. For an exchange to be rated among the best crypto exchanges in France, it must prioritize robust security protocols to avoid breaches. Measures such as two-factor authentication, cold storage for funds, and regular security audits indicate a platform's commitment to safeguarding users' assets.
- Features. An exchange offering a broad range of trading options and other crypto-based tools allows users to explore different investment opportunities. So, make sure that the exchange you plan to choose has everything you need.
- Fees. Another important feature that best crypto exchanges in France must possess is transparent and competitive fees. High fees can significantly impact profitability, especially for frequent traders. So, make sure to choose an exchange with fees that fit your trading needs.
- Fiat Support. The ability to trade crypto against the Euro (EUR) and other fiat currencies simplifies transactions for French users. An exchange that facilitates fiat-to-crypto trading enhances accessibility and convenience.
- Usability. Whether you're a beginner or an experienced user, no one prefers a platform that is hard to navigate. So, make sure that the best crypto exchange in France you plan to use has a user-friendly interface.
That's basically it; if you take these into account, it will be much easier to find the best crypto exchange in France specifically for you.
Conclusions
In the ever-evolving crypto industry, the journey to find the best crypto exchange in France is an important step toward accessing the dynamic world of digital assets. While looking for one, you'll surely stumble upon big names like Binance, Coinbase, and Kraken.
However, remember that your choice is deeply personal and should align with your individual goals. Whether you're an experienced trader seeking advanced tools or a newcomer taking your first steps, the best crypto exchange in France you plan to use should be one that fulfills all your needs.
Also, remember that an exchange should prioritize security, user-friendliness, and a broad range of supported cryptocurrencies, as these are essential markers of a strong contender for the title of the best crypto exchange in France (or anywhere else, for that matter).