MiCA Regulation Phase 2: How It Changes Crypto Trading in France

The European crypto regulatory landscape has entered a decisive new chapter. With MiCA Regulation Phase 2 fully applicable since December 30, 2024, France has officially transitioned from its national crypto framework to a harmonized EU-wide regime. 

This shift fundamentally reshapes how crypto trading operates across the country, redefining compliance, transparency, and market access.

Under MiCA Phase 2, Crypto-Asset Service Providers (CASPs) in France must now secure full authorization, replacing the former PSAN/DASP regime introduced under the PACTE Law. The result is a more rigorous, standardized regulatory environment that directly affects exchanges, custodians, trading platforms, and fiat-to-crypto gateways. 

While compliance burdens have increased, the regulation also elevates market credibility and investor confidence positioning France as a cornerstone of regulated crypto finance in Europe.

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Key Takeaways

• MiCA Phase 2 replaces France’s PSAN framework with mandatory EU-wide CASP licensing

• Crypto trading platforms face stricter rules on custody, AML/CFT, and market integrity

• Authorized CASPs benefit from EU passporting, enabling cross-border expansion

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What Is MiCA Regulation Phase 2?

MiCA, short for Markets in Crypto-Assets Regulation, is the European Union’s first comprehensive legal framework governing crypto assets. Phase 2 represents its full operational rollout, moving beyond transitional guidance into enforceable obligations.

For France, this phase marks a structural pivot. The national PSAN registration once optional for certain activities has been superseded by mandatory CASP authorization. This means crypto trading is no longer regulated primarily at the national level but aligned with uniform EU standards, ensuring consistency across member states.

MiCA Crypto France: Key Timelines and Legal Integration

France formally embedded MiCA Phase 2 into domestic law through Ordinance 2024-936 and Decree 2025-169, amending the Monetary and Financial Code. Oversight responsibilities are now split between two authorities:

• AMF (Autorité des marchés financiers): market conduct, transparency, and investor protection

• ACPR (Autorité de contrôle prudentiel et de résolution): prudential supervision and financial stability

Transitional Period Explained

Existing PSAN-registered firms benefit from a transitional window until June 30, 2026. During this period, they must either:

• Apply for full CASP authorization, or

• Cease crypto-related operations in France

New market entrants, however, were required to obtain CASP approval before operating from late 2024 onward.

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Réglementation Crypto France: How Trading Operations Are Changing

MiCA Phase 2 introduces a deeper regulatory perimeter around crypto trading activities. Platforms operating in France must now comply with expanded obligations across the entire trading lifecycle.

Licensing and Authorized Activities

CASP authorization is no longer activity-light. Explicit licensing is required for:

• Crypto custody and safeguarding

• Exchange services (crypto-to-crypto and fiat-to-crypto)

• Order execution and portfolio management

Each activity carries its own governance, capital, and risk-management requirements.

Market Integrity and AML Controls

Trading platforms must implement robust safeguards against market abuse, including insider trading and manipulation. Enhanced AML/CFT due diligence is mandatory, with stricter client onboarding, transaction monitoring, and reporting standards aligned with EU-wide financial crime frameworks.

Sustainability and Transparency Rules

MiCA also introduces sustainability disclosures, particularly for proof-of-work assets. Platforms must report on the environmental impact of consensus mechanisms adding a non-financial compliance dimension to crypto trading in France.

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France Crypto Rules: Impact on Firms and Investors

The compliance threshold for operating in France has undeniably risen. Stablecoin issuers classified as ARTs (Asset-Referenced Tokens) or EMTs (E-Money Tokens) face reserve requirements, governance obligations, and redemption guarantees.

For firms, this creates higher entry barriers but also filters out unlicensed or opaque operators. For investors, the upside is clearer: stronger protections, standardized disclosures, and regulated dispute-resolution mechanisms.

To support the transition, the AMF has launched guidance initiatives and compliance workshops, helping firms migrate from PSAN to CASP status without operational disruption.

EU Passporting: A Strategic Advantage for Authorized CASPs

One of the most transformative elements of MiCA Phase 2 is EU passporting. Once authorized in France, a CASP can legally offer services across all EU member states without seeking separate national approvals.

This transforms France from a domestic crypto hub into a pan-European launchpad, incentivizing compliant platforms to scale beyond borders while remaining under a single regulatory umbrella.

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FAQ

When did MiCA Phase 2 become effective in France?

MiCA Phase 2 became fully applicable on December 30, 2024, enforcing mandatory CASP licensing across the EU.

Does MiCA replace France’s PSAN regime?

Yes. The PSAN framework under the PACTE Law is being phased out and replaced by EU-wide CASP authorization.

Do existing French crypto firms need to reapply for licenses?

Yes. Existing PSAN-registered firms have until June 30, 2026, to obtain CASP approval or exit the market.

How does MiCA affect crypto trading platforms?

Platforms must meet stricter rules on custody, AML/CFT checks, market abuse prevention, and sustainability disclosures.

What are the benefits for crypto investors in France?

Investors gain stronger protections, clearer risk disclosures, regulated platforms, and reduced exposure to unlicensed operators.

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