Remote VASP serving residents in France
Foreign-incorporated entity that offers exchange, custody, or transfer services to residents of a jurisdiction without establishing a local entity or office.
Remote VASP is conditionally permitted in France with a local entity, subject to AML obligations and high licensing burden.
Verdict Details
- Permitted
- conditional
- Local entity required
- Yes
- Licensing burden
- High
- Last updated
- 2026-07-13
AML Obligations
- CASP authorization (MiCA CASP license via AMF) required — minimum capital ranging from €50,000 (custody) to €150,000 (exchange/trading platforms)
- KYC obligations: collect, verify, and store identity documents (two forms of ID); ongoing transaction monitoring
- Enhanced Due Diligence (EDD) required for PEPs, transactions over €1,000 to self-hosted wallets, and high-risk cross-border activities
- KYB for corporate clients (beneficial ownership verification)
- FATF Travel Rule compliance — threshold: EUR 0 (no de minimis threshold under TFR recast)
- Suspicious transaction reporting to TRACFIN
- AML/CFT policies, CDD, and registration required since 5AMLD implementation (January 2020)
- DAC8 reporting obligations effective January 1, 2026 — mandatory reporting of user crypto transactions to tax authorities
- Managers and beneficial owners verified during AMF registration process
- Supervised jointly by AMF (conduct/registration) and ACPR (prudential/AML)
Key Restrictions
- Non-resident provider cannot serve French residents from abroad without a CASP license — local incorporation in France is effectively required
- Must transition from legacy DASP registration to full MiCA CASP authorization (transition deadline for PSANs was June 30, 2025)
- Minimum capital requirements: €50,000 (custody), €150,000 (exchange/trading platforms), €125,000–€350,000 range per MiCA for CASPs generally
- Geofencing to block French residents while unlicensed is the only way to avoid triggering French regulatory obligations
Key Risks
- High enforcement risk for unlicensed remote operators — AMF/ACPR have active enforcement powers and a track record of sanctions against unauthorized crypto service providers
- France's mature crypto framework and active supervision means unlicensed cross-border servicing is likely detected (e.g., via user complaints, bank referrals, TRACFIN intelligence)
- Tax reporting obligations (DAC8 from 2026) create additional compliance burden for licensed operators
- Short transition window for legacy DASPs to MiCA CASP creates risk of gap in authorization
- AMF has publicly targeted unregistered foreign crypto platforms — Binance pre-2023 is a real-world example of France requiring local licensing
Evidence
This verdict synthesizes the following facts. Each fact links to its primary source(s).
VASP: CASP authorization under MiCA via AMF. SHORT 6-month transition (existing PSANs had to apply by June 30, 2025). 3-6 months (AMF is experienced). France positioning as EU crypto hub.
EXCHANGE: CASP authorization — EUR 150,000 minimum capital for trading platforms
CUSTODY: CASP authorization — custody is a licensed MiCA activity (EUR 50,000 minimum capital)
AMF — CASP authorization — most experienced EU NCA for crypto. Circle chose France for EU MiCA authorization.
EU Fifth AML Directive (5AMLD): Implemented in France in January 2020, requiring AML/CFT policies, CDD, and registration for all crypto firms serving French clients.
Markets in Crypto-Assets Regulation (MiCA): Enhances transparency, security, and AML for crypto providers; DASPs must transition to CASP licensing with minimum capital (€125,000–€350,000) and FATF Travel Rule compliance.
Collect, verify, and store identity documents (e.g., two forms of ID); use third parties permitted.
Enhanced Due Diligence (EDD): For high-risk cases like PEPs, transactions over €1,000 to self-hosted wallets, or cross-border activities.
Ongoing transaction monitoring, KYB for corporate clients (beneficial ownership), and ML/FT risk assessment systems.
Managers and beneficial owners verified during AMF registration.
Travel Rule adopted — threshold: EUR 0 (no threshold under TFR recast)
TRACFIN: Handles suspicious transaction reports for AML/CFT.
DAC8 implementation (Finance Bill 2025, effective January 1, 2026): Requires CASPs and tied providers to report user crypto transactions to tax authorities.
AML/CFT for CASPs (since December 30, 2024): Mandates KYC, transaction monitoring, and sanctions compliance.
PACTE Act (Act No. 2019-486, May 22, 2019): Introduced DASP registration with AMF and ICO framework; foundation for current rules.
Verdict Attribution
- Source:
- AI-Generated · Unreviewed
- AI synthesized:
- 2026-07-13 (deepseek-chat)
- Last updated:
- 2026-07-13
- Confidence:
- high
This verdict was produced by an AI model from the underlying facts. Confirm with counsel before relying on it for material decisions.
Conditional — a remote VASP serving French residents must obtain a MiCA CASP license (via AMF) with local incorporation, meet minimum capital requirements (€50K–€150K+), and comply with full AML/CFT obligations including EUR 0-threshold Travel Rule; serving French residents without authorization carries high enforcement risk given France's mature and actively enforced regulatory framework.
Questions this verdict aims to answer
- May a non-resident provider serve residents from abroad?
- Does cross-border service trigger licensing, registration, or AML obligations?
- What enforcement risk exists for unlicensed remote operators?