Financial Crime World

Regulation of Compliance in the Financial Sector in French Guiana: A State of Affairs

======================================================

French Guiana, a French overseas territory governed by French constitutional provisions, is subject to French laws. Consequently, its current regime for digital assets is regulated by French law.

Regulation of Digital Assets - Blockchain

In May 2019, France published regulations regarding Initial Coin Offerings (ICOs) and intermediaries offering cryptocurrency services as part of the PACTE Law No. 2019-486. The aim of these regulations is to attract meritorious projects to its territory while integrating this ecosystem into the regulatory framework. In addition to compliance with the Anti-Money Laundering (AML) Directive of the Fifth European Union Pact, France has also imposed additional obligations on intermediaries. To this end, it has provided a level of regulation for these intermediaries inspired by MiFID II obligations related to financial services.

Optional Visa for ICOs

ICOs issuers can request an “optional visa” from the French Financial Markets Authority (AMF) in exchange for presenting an information document, transparent and non-misleading communications to the public, as well as compliance with AML obligations. They are not required to do so, but this visa allows them to access a bank account and seek investments.

Regulation of Intermediaries

  • Obligatory Registration: Providers of security portfolios and cryptocurrency/fiat exchange providers are subject to an obligatory AML registration. They must also comply with a set of rules, including those related to money laundering.
  • Optional License: All intermediaries, including platforms and investment advisors, can request an optional license. As a result, they will be required to comply with AML obligations and other regulatory requirements depending on the activity performed. It is worth noting that the Financial Action Task Force (FATF) revised its guidelines in October 2018 to recommend registering and licensing all intermediaries in the cryptocurrency ecosystem to combat money laundering and terrorist financing.

The French regulation of digital assets - rules applicable in the territory of French Guiana - is both easy to understand and non-oppressive, as the country wanted to position itself as a pioneer in welcoming new technologies above all.

Note: The legislation governing cryptocurrencies varies from country to country. For more information on the situation in French Guiana and other countries, please consult our Freeman Law resources page on cryptocurrency law.