France has established a comprehensive regulatory framework for cryptocurrencies, emphasizing compliance with the Financial Action Task Force (FATF) Travel Rule. The PACTE Law, enacted in May 2019, introduced specific provisions for Digital Asset Service Providers (DASPs), mandating registration and adherence to anti-money laundering (AML) and counter-terrorist financing (CTF) measures. The Travel Rule requirements were enforced starting December 9, 2020, aligning France with international standards.

1. Is cryptocurrency legal in France?

Yes. French residents are legally permitted to own, buy, and sell virtual assets. The regulatory framework ensures that cryptocurrency activities are conducted within a legal and secure environment.

2. Are there any AML crypto regulations in France?

Yes. The PACTE Law requires DASPs to register with the Autorité des Marchés Financiers (AMF) and comply with AML and CTF obligations. This includes customer due diligence, transaction monitoring, and reporting suspicious activities to the relevant authorities.

3. Is the Crypto Travel Rule mandated in France?

Yes. France mandated the Travel Rule on December 9, 2020, requiring DASPs to collect and transmit identifying information for both originators and beneficiaries in cryptocurrency transactions, in line with FATF Recommendation 16.

4. Who regulates cryptocurrency in France?

The Autorité des Marchés Financiers (AMF) oversees the regulation of cryptocurrencies in France, ensuring that DASPs comply with the established legal and regulatory framework.

FATF Travel Rule requirements in France

1. Are there licensing or registration requirements for DASPs in France?

Yes. DASPs must register with the AMF and demonstrate compliance with AML and CTF obligations. This registration process includes providing detailed information about the company's operations, governance, and internal control mechanisms.

2. When did the Crypto Travel Rule go into effect in France?

The Crypto Travel Rule became effective in France on December 9, 2020, following the enactment of the PACTE Law and subsequent regulatory updates.

3. Does France permit a grace period to comply with the Crypto Travel Rule?

France provided a transitional period for existing DASPs to comply with the new regulations. Specifically, service providers who were providing services consisting in the exchange of digital assets against other digital assets and who were operating digital asset trading platforms before December 10, 2020, had until June 10, 2021, to comply with the registration requirement.

Complying with the FATF Crypto Travel Rule in France

1. What is the minimum threshold for the Crypto Travel Rule in France?

France applies the Travel Rule to all cryptocurrency transactions, regardless of the amount, to ensure comprehensive compliance with AML and CTF measures.

2. What personally identifiable information is required to be shared for the Crypto Travel Rule in France?

DASPs are required to collect and transmit the following information for both originators and beneficiaries:

• Full name
• Address
• Date and place of birth
• Nationality
• Account number or unique transaction identifier

This information ensures transparency and traceability in cryptocurrency transactions.

3. What are the non-custodial or self-hosted wallet requirements in France?

France requires DASPs to apply the same AML and CTF measures to transactions involving self-hosted wallets. This includes conducting due diligence and, when necessary, reporting suspicious activities to the relevant authorities.

Why choose Notabene for Crypto Travel Rule Compliance in France?

Notabene offers a comprehensive solution to help DASPs comply with France's Crypto Travel Rule requirements. Our platform facilitates secure information sharing between VASPs, ensuring adherence to AML and CTF obligations. With Notabene, you can streamline compliance processes, reduce operational risks, and maintain the trust of your customers and regulators.