Ordinance 2024-936 of 15 October 2024 on crypto-asset markets (the “MiCA Ordinance”) and Ordinance 2024-937 of 15 October 2024 on the strengthening of requirements to combat money laundering and terrorist financing in relation to the transfer of crypto-assets (the “TFR Ordinance”) were published in the French Official Journal on Wednesday 17 October 2024.

The MiCA Ordinance adapts the provisions of French law to the entry into force of Regulation (EU) 2023/1114 of 31 May 2023 on markets in crypto-assets (“MiCAR”).

The TFR Ordinance transposes into French law the provisions of Directive (EU) 2015/849 of 20 May 2015 on the prevention of the use of the financial system for the purpose of money laundering or terrorist financing ("AMLD") as amended by Regulation (EU) 2023/1113 of 31 May 2023 on information accompanying transfers of funds and certain crypto-assets ("TFR Regulation").

In view of MiCAR coming into force on 30 December 2024, the MiCA Ordinance amends various provisions of French law to adapt it to the new European regulatory framework governing crypto-assets.

The MICA Ordinance incorporates the MiCAR’s terminology of “crypto-assets” into the existing provisions of several codes.

The MICA Ordinance divides the regulatory prerogatives between the AMF and the ACPR with regard to the authorisation and supervision of crypto-asset service providers (“CASPs”), issuers of electronic money tokens (“EMTs”) and asset-referenced tokens (“ARTs”) and the monitoring of market abuse involving crypto-assets.

The MiCA Ordinance also adjusts the framework applicable to direct solicitation of investors, electronic advertising, sponsorship and commercial influence to MiCAR.

New provisions have been included in Book II of the Monetary and Financial Code (“MFC”) to clarify the legal nature of digital assets and the rules governing transfer of their property.

The MICA Ordinance limits the cases in which a credit institution may refuse to open a deposit account for PSANs, CASPs or issuers authorised to offer ARTs.

Lastly, the MICA Ordinance provides for the survival of certain provisions of the French framework applicable since 2019 during the transitional period provided for by MICAR. During this period, the provisions relating to digital asset service providers (“DASPs”) will remain alongside the rules applicable to CASPs, and “crypto-assets” within the meaning of MiCAR will be considered as “digital assets”. All the provisions governing “digital assets” and DASPs will be abolished on 1 July 2026.

Most of the provisions of the MiCA Ordinance will come into force on 30 December 2024. However, the provisions relating to EMTs and ARTs will come into force as soon as 18 October 2024.

The provisions of MiCAR terminating the DASP status will come into force on 1 July 2026, at the end of the transitional period for DASPs already registered or authorised before 30 December 2024.

The TFR Ordinance transposes into the MFC the provisions of Directive (EU) 2015/849 of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing (“AMLD”) in its version resulting from Regulation (EU) of 31 May 2023 on information accompanying transfers of funds and certain crypto-assets (the “Transfer of Funds Regulation”).

While existing French law already subjected DASPs to the rules stemming from AMLD, the TFR Ordinance adapts the terminology used to the definitions adopted in MiCAR.

The TFR Ordinance also sets out new requirements, including:

• the implementation of money laundering and terrorist financing risk mitigation measures for correspondent relationships between a CASP established and registered in the European Union (EU) and a financial institution (which may be a CASP) established in a non-EU jurisdiction;
• the implementation of additional due diligence measures by CASPs executing or receiving a transfer of crypto-assets to or from a self-hosted address.

Most of the provisions of the TFR Ordinance will come into force on 30 December 2024. Only the provisions definitively ending the national DASP framework will come into force on 1 July 2026, at the end of the transitional period provided for by MICAR.

Certain of these provisions will be detailed further in a decree.