The crypto-asset ecosystem, once seen as a digital frontier for insiders, now represents a key sector for investment and innovation. For companies and individuals alike, it offers new opportunities, but its rapid development has long been accompanied by an uncertain legal framework, a source of major risks. In response, the European Union has laid the foundations for ambitious regulation with two major pieces of legislation: the MiCA (Markets in Crypto-Assets) and TFR (Transfer of Funds Regulation) regulations. These new rules mark a turning point, aimed at harmonising the market, protecting investors and combating illicit activities. The aim of this article is to decipher this new legal environment and its practical consequences, as part of our overall analysis of digital assets: legal challenges and practical solutions.
The legal phenomenon of crypto-assets and the need for regulation
Far from being a legal vacuum, the world of crypto-assets was the subject of numerous analyses and attempts at regulation prior to European intervention. However, the need for a structured approach has become apparent in order to channel exponential economic and technological growth and respond to legitimate concerns about financial security.
The influence of European and international institutions
Prior to the adoption of MiCA and TFR, a number of bodies had already sounded the alarm about the risks associated with the absence of harmonised rules. Reports from the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) highlighted the need for a common framework to protect consumers and ensure market integrity. These reflections fuelled the political will to create a legal ecosystem capable of dealing with the complexity of digital assets, from virtual currencies to more complex tokens. The aim was to move from a patchwork of national regulations to a single set of rules for the whole of the EU.
The approach of national law to crypto-assets
France has played a pioneering role in this area. With the 2019 PACTE Act, it was one of the first countries to establish a specific regime for digital assets. In particular, this regime created the status of digital asset service provider (DASP), subject to mandatory registration with the Autorité des marchés financiers (AMF) for certain services, and optional authorisation for others. This legislation has provided a framework for players in the sector by imposing obligations, particularly with regard to the fight against money laundering and the financing of terrorism (AML/CFT). While this national initiative provided an initial form of security, it was by its very nature limited to French territory and was a transitional stage pending Europe-wide regulation.
The mica regulation (markets in crypto-assets): a harmonised framework
Adopted on 31 May 2023, Regulation (EU) 2023/1114, known as MiCA, is the centrepiece of the new European regulatory framework. It aims to establish uniform rules for issuers of crypto-assets and service providers, in order to foster innovation while ensuring a high level of protection for investors and the Union's financial stability.
Scope of the regulation: issuers and providers of crypto-asset services (psca)
The scope of MiCA is broad. It covers persons and entities that issue crypto-assets, offer them to the public or apply for them to be admitted to trading on a platform. It also applies to crypto-asset service providers (CASPs). This new European term replaces the French status of PSAN.
To operate in the European Union, these service providers will have to obtain a single authorisation from the competent authority in a Member State. This authorisation, based on strict requirements in terms of governance, capital, security of information systems and customer protection, will function as a "European passport". It will allow an SCSP authorised in one EU country to offer its services in all other Member States, creating a single, competitive market.
The new classification of crypto-assets (utility tokens, e-mts, art)
To adapt requirements to the diversity of assets, MiCA introduces a precise legal classification. First, it defines a crypto-asset as "a digital representation of a value or right that can be transferred and stored electronically, using distributed ledger or similar technology".. Within this large family, the regulations distinguish three main categories :
- The Utility Tokens They give access to a good or service provided by the issuer.
- The Asset-Referenced Tokens (ARTs) stablecoin: this is a form of stablecoin that aims to maintain a stable value by referring to a basket of several official currencies, commodities or other crypto-assets.
- The electronic money tokens (EMTs) Stablecoins: these are "stablecoins" that refer to the value of a single official currency, such as the euro or the dollar. They are considered to be electronic substitutes for notes and coins.
This approach makes it possible to apply different supervisory regimes. While issuers of utility tokens are subject to lighter requirements, issuers of ARTs and EMTs are subject to much stricter supervision because of the risks they may pose to financial stability. It is important to note that certain assets, such as unique and non-interchangeable non-fungible tokens (NFTs), are in principle excluded from the scope of MiCA. However, the regulation favours an approach based on substance rather than form. NFTs issued in large series could be requalified and fall within the scope of the regulation. To find out more, read our article on the legal status of digital assets provides additional insight.
The end of the national psan scheme and the transitional period
The implementation of MiCA signals the scheduled end of the French PSAN regime. To ensure a smooth transition, a transitional period has been put in place. PSANs that were providing their services in accordance with French law before 30 December 2024 will be able to continue to do so until 1 July 2026. During this period, they will have to comply with the requirements of the European regulation and obtain PSCA approval in order to be able to continue their activities beyond this date. This transitional phase is crucial for French operators, who need to anticipate the steps they will need to take to ensure their continued activity in the new European market.
New powers for the amf and acpr
In France, adaptation to the MiCA framework was specified by Order 2024-936 of 15 October 2024. This decree divides supervisory powers between the Autorité des marchés financiers (AMF) and the Autorité de contrôle prudentiel et de résolution (ACPR). The AMF will be primarily responsible for supervising markets and authorising the majority of PSCAs. The ACPR, meanwhile, will inherit responsibility for issuers of electronic money tokens (EMTs), because of their proximity to traditional payment activities. This division of roles is inspired by existing supervision in the traditional financial sector, where robust mechanisms exist for thecompensation and protection for customers in the event of default regulated players.
tfr (transfer of funds regulation): strengthening the fight against money laundering
The second pillar of European regulation is Regulation (EU) 2023/1113, or TFR, which extends the traceability requirements for money transfers to transactions in crypto-assets. Its aim is to prevent the use of these technologies for money laundering and terrorist financing purposes.
Application of the travel rule to crypto-asset transfers
The flagship measure of the TFR is the application of the "Travel Rule" to crypto-assets. This principle, already in force for traditional bank transfers, requires crypto-asset service providers to collect and transmit information on the originator (payer) and beneficiary of each transaction. In practical terms, when a transfer is made, data such as the originator's name, crypto-asset account number (e.g. wallet address), and similar information for the recipient must "travel" with the transaction. This transparency requirement applies to all transfers, with no amount threshold, and is intended to put an end to the anonymity often associated with cryptocurrency transactions.
Adapting French law to the new lbc/ft obligations
France transposed these requirements by Order 2024-937 of 15 October 2024. This text amends the Monetary and Financial Code to incorporate the obligations arising from the TFR. French PSCAs (and future European PSCAs operating in France) will therefore have to implement robust internal procedures to ensure the collection, verification and transmission of the information required for each transfer of crypto-assets. Failure to comply with these rules will expose service providers to administrative and criminal penalties, thereby strengthening the arsenal against illicit financial flows.
Practical implications for legal professionals and businesses
The arrival of this new regulatory framework is profoundly transforming the crypto-asset sector. For businesses and legal practitioners, it creates both compliance challenges and an increased need for expert legal support.
The duties of legal professionals faced with the complexity of crypto-assets
For lawyers, notaries and other advisers, these regulations impose a duty of competence and curiosity. It is becoming imperative to train and master not only the technical aspects of blockchain, but also the subtleties of the MiCA and TFR regulations. This strengthens the duty to advise: the aim is to be able to explain clearly the risks and benefits of investing in crypto-assets, to explain the new compliance obligations and to report any suspicious transactions to TRACFIN. More than ever, the legal security of transactions depends on the support of an informed professional.
Compliance challenges and associated legal risks
For companies in the sector, the transition to the MiCA framework represents a major compliance effort. They will have to review their documentation (white papers), internal processes, control and IT security systems, and marketing strategies to comply with the new rules. Obtaining PSCA accreditation will be a demanding process, requiring meticulous preparation. Failure to comply with obligations, whether relating to the protection of customer funds, advertising rules or the Travel Rule, will result in significant financial and reputational risks.
Support for investment and asset management transactions
In this context, the use of a lawyer becomes essential to secure operations. Whether structuring a token issue (ICO), drafting MiCA-compliant terms and conditions of service, or preparing a PSCA approval file, legal expertise is essential. Crypto-assets are also becoming an increasingly important part of wealth management. The transfer of these assets by gift or inheritance, their treatment under a matrimonial regime or their use as collateral raise complex legal issues that require bespoke solutions to protect clients' interests.
The MiCA and TFR regulations are creating a more secure but also more demanding environment for crypto-asset players. Navigating this new regulatory landscape with confidence and turning constraints into opportunities requires specialist expertise. To secure your projects and investments linked to crypto-assets, the assistance of a lawyer skilled in commercial law and new technologies is a decisive asset. Contact our firm for an analysis of your situation.
Sources
- Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets (MiCA).
- Regulation (EU) 2023/1113 of the European Parliament and of the Council of 31 May 2023 on information accompanying transfers of funds and certain crypto-assets (TFR).
- Monetary and Financial Code.
- Law no. 2019-486 of 22 May 2019 on the growth and transformation of businesses (Loi PACTE).
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