French Guiana’s Approach to Anti-Money Laundering Regulations in the Cryptocurrency Space
Regulatory Framework
In French Guiana, a French territory governed by the provisions of the French constitution, the current cryptocurrency regime is regulated under French legislation. The regulatory framework for cryptocurrencies aims to strike a balance between attracting innovation and preventing illicit activities such as money laundering.
France’s PACTE Law n° 2019-486
In May 2019, France issued regulations regarding Initial Coin Offerings (ICOs) and intermediaries providing crypto-asset services under its PACTE law n° 2019-486. This law provides a degree of regulation inspired by the MiFID II obligations for financial services.
Visa for ICOs
ICOs issuers can apply for a “visa” from the French Financial Markets Regulator (AMF), which requires:
- Filing an information document
- Providing clear and transparent communications to the public
- Complying with AML duties
This visa gives the issuer access to a bank account and allows them to solicit investment.
Regulation of Intermediaries
Custodian wallet providers and crypto/fiat exchange service providers are subject to mandatory AML registration. All intermediaries, including platforms and investment advisers, can apply for an optional license that requires:
- Compliance with AML duties
- Other regulatory requirements
French Guiana’s Approach
France’s cryptocurrency regulation is designed to be both easy to understand and not overbearing, making it a pioneer in welcoming new technologies to the nation. By regulating cryptocurrencies under French legislation, French Guiana aims to attract innovation while preventing illicit activities.
Insights on Cryptocurrency Legal Issues
Most jurisdictions have yet to enact laws governing cryptocurrencies, leaving the legality of crypto mining unclear in many countries. However, apart from those that have specifically banned cryptocurrency-related activities, very few countries prohibit crypto mining. Our Freeman Law Cryptocurrency Law Resource page provides a summary of the legal status of cryptocurrency for each country across the globe.
Contact Us
If you have questions about cryptocurrency, digital currencies, or blockchain technology, Freeman Law can help with:
- Digital currencies
- Tax planning
- Tax compliance
Contact us now to schedule a consultation, or call (214) 984-3410 to discuss your cryptocurrency and blockchain technology concerns.