PSAN: Becoming a Digital Asset Service Provider in France

Introduction

Obtaining your PSAN registration is the regulatory gateway to the French crypto market.

The Digital Asset Service Provider (PSAN - Prestataire de Services sur Actifs Numeriques) status is the regulatory key to legally operating crypto activities in France. With MiCA coming into force, the landscape is shifting toward a European license, but PSAN remains the entry point for French operators. This guide details the procedures, requirements, and best practices for obtaining and maintaining this status.

What you will learn:

• The different categories of PSAN services
• Registration and approval requirements
• The complete AMF procedure
• The transition to MiCA (CASP)
• Ongoing compliance obligations

Table of Contents

1. Understanding PSAN Status
2. Regulated Services
3. Registration vs Approval
4. Registration Procedure
5. Organizational Requirements
6. AML/CFT Compliance
7. Cybersecurity and Asset Protection
8. Ongoing Obligations
9. Transition to MiCA (CASP)
10. Costs and Timelines
11. FAQ

1. Understanding PSAN Status

Since 2019, France has regulated crypto operators with a pioneering regime in Europe.

Legal Definition

The PSAN is defined by Article L. 54-10-2 of the French Monetary and Financial Code (Code monetaire et financier), introduced by the PACTE law of 2019:

"Digital asset service providers are legal entities that provide, on a regular professional basis, one or more of the following digital asset services..." -- Article L. 54-10-2 CMF

Regulatory History

PSAN in the European Landscape

Positioning of the French regime:

• France: pioneer with a dedicated regime since 2019
• Before MiCA: heterogeneous national regimes
• After MiCA: convergence toward the European CASP
• French advantage: advanced regulatory experience

2. Regulated Services

Custody and fiat buy/sell services require immediate PSAN registration.

List of Digital Asset Services

Article L. 54-10-2 defines the services requiring registration or approval:

Focus on Custody

Definition of custody:

"The custody on behalf of third parties of digital assets or access to digital assets, where applicable in the form of private cryptographic keys, for the purpose of holding, storing and transferring digital assets."

What is covered:

• Holding private keys for clients
• Custodial wallets
• Cold storage services
• Custody for exchanges

Focus on Fiat Buy/Sell

Definition:

"The purchase or sale of digital assets in legal tender currency."

Examples:

• Crypto exchange bureaus
• Bitcoin ATMs
• Direct purchase platforms
• On/off ramp services

3. Registration vs Approval

Registration is sufficient to get started; optional approval strengthens your credibility.

Comparison Table

Why Choose Approval?

Advantages of optional approval:

1. Trust signal: higher level of compliance
2. Broader scope: all services available
3. MiCA preparation: requirements close to CASP
4. Banking access: facilitated by the level of regulation
5. European passport: prepared for MiCA

4. Registration Procedure

Nine to eighteen months of procedure -- prepare a complete application from the outset.

Step 1: File Preparation

Required documents:

Step 2: Filing and Review

AMF process:

File submission (AMF)
        |
        v
Acknowledgment of receipt (within 48h)
        |
        v
Completeness check (2 months max)
        |
        |---> Request for additional information (if needed)
        |
        v
Substantive review
        |
        v
ACPR opinion (AML/CFT)
        |
        v
AMF decision
        |
        |---> Registration approved
        |
        |---> Refusal (with reasoning)

Step 3: Key Considerations

Common reasons for rejection or requests for additional information:

1. Fit and proper: background of directors/shareholders
2. AML/CFT procedures: insufficiently detailed
3. Human resources: undersized compliance team
4. IT security: gaps in the cybersecurity policy
5. Governance: insufficient separation of functions

Fit and Proper Criteria (since 2023)

Strengthened requirements:

"Must not have been the subject of a final conviction... for a crime, for certain offenses (money laundering, tax fraud, corruption...)"

Persons concerned:

• Effective directors
• Board members
• Shareholders holding 25%+ of the capital
• Compliance officers

5. Organizational Requirements

Two directors, a dedicated AML officer, and documented procedures are indispensable.

Minimum Structure

Mandatory functions:

Documented Policies and Procedures

Required documentation:

PSAN Compliance File
|
+-- Governance
|   +-- Organization chart
|   +-- Job descriptions
|   +-- Delegations of authority
|
+-- AML/CFT
|   +-- Risk classification
|   +-- KYC/KYB procedure
|   +-- Transaction monitoring
|   +-- Asset freezing
|   +-- TRACFIN reports
|
+-- Security
|   +-- ISSP (Information Systems Security Policy)
|   +-- Incident management
|   +-- Business continuity
|   +-- Key protection
|
+-- Client Relations
    +-- Terms of service / Terms and conditions
    +-- Complaints handling
    +-- Consumer protection

Technical Resources

Required infrastructure:

• Transaction monitoring systems
• KYC scoring tools
• Sanctions screening solution
• Secure data storage
• Logging and audit trails

6. AML/CFT Compliance

Rigorous KYC, continuous monitoring, and TRACFIN reports form your anti-money laundering shield.

Regulatory Framework

Applicable texts:

• Monetary and Financial Code (L. 561-1 et seq.)
• 6th Anti-Money Laundering Directive (AMLD6)
• AMLR Regulation (forthcoming)
• AMF/ACPR guidelines

Main Obligations

1. Client Identification and Verification (KYC):

2. Risk Classification:

Risk = f(Client, Product, Channel, Geography)

Levels:
+-- Low       -> Simplified measures possible
+-- Standard  -> Normal measures
+-- High      -> Enhanced due diligence
+-- Very high -> Refusal or management authorization

3. Transaction Monitoring:

• Detection of atypical transactions
• Automated alerts
• Manual review of alerts
• Documentation of decisions

4. Suspicious Activity Reports (TRACFIN):

• Mandatory reporting in case of suspected money laundering or terrorist financing
• Deadline: without undue delay
• Absolute confidentiality

Asset Freezing

Freezing obligation:

• Consultation of sanctions lists (EU, UN, OFAC...)
• Immediate freezing of assets of listed persons
• Declaration to the DG Tresor (French Treasury)
• Prohibition from providing services

7. Cybersecurity and Asset Protection

Multi-signature, HSM, and hot-cold wallet separation protect your clients' assets.

Security Requirements

Security framework:

Cryptographic Key Protection

Recommended standards:

Custody Architecture
|
+-- Hot wallet (operational)
|   +-- Multi-sig (2/3 minimum)
|   +-- Amount limit
|   +-- Real-time monitoring
|
+-- Warm wallet (intermediate)
|   +-- Multi-sig (3/5)
|   +-- Formalized access procedure
|   +-- Regular audit
|
+-- Cold wallet (long-term storage)
    +-- Multi-sig (4/7)
    +-- HSM or paper wallet
    +-- Geo-distribution
    +-- Formalized signing ceremony

Business Continuity

Business Continuity Plan (BCP/DRP):

• Identified disaster scenarios
• Failover procedures
• Regular testing
• Recovery timelines (RTO/RPO)

8. Ongoing Obligations

Semi-annual reporting, incident management, and continuous training maintain your compliance.

Regular Reporting

Mandatory declarations:

Internal Controls

Control framework:

• Permanent controls (1st level operational)
• Periodic controls (2nd level compliance)
• Internal or external audit (depending on size)

Continuous Training

Training obligations:

• Initial training for all employees
• Annual AML/CFT refresher
• Function-specific training
• Training documentation

9. Transition to MiCA (CASP)

July 2026 marks the end of the PSAN regime -- begin your transition to the European CASP.

Transition Timeline

MiCA deadlines:

Transitional Regime

Options for existing PSANs:

1. Continue under the PSAN regime until July 1, 2026
2. Apply for CASP authorization as soon as possible
3. Benefit from the simplified procedure (PSAN to CASP)

PSAN vs CASP Differences

Recommended Preparation

PSAN to CASP transition checklist:

• Assess the gap between PSAN and CASP requirements
• Strengthen capital if necessary
• Subscribe to professional liability insurance
• Adapt governance policies
• Update client procedures
• Prepare the CASP authorization file
• Anticipate timelines (12+ months)

10. Costs and Timelines

Budget between EUR 150,000 and EUR 400,000 in the first year for your PSAN compliance.

Cost Estimates

Typical budget for a PSAN registration:

Average Timelines

Observed statistics (2023-2024):

Acceleration Factors

Best practices:

• Complete file at the time of submission
• Responsiveness to requests for additional information
• Use of experienced advisors
• Anticipation of cybersecurity requirements
• Comprehensive documentation from the outset

11. FAQ

General Questions

Q: Can I operate without PSAN registration while awaiting approval?

A: No, operating without registration is prohibited and subject to criminal penalties (2 years imprisonment, EUR 30,000 fine). Certain services not on the list (blockchain development, non-personalized advice) do not require PSAN registration.

Q: Does PSAN registration allow operations across the entire EU?

A: No, PSAN registration is valid only in France. To operate in other EU countries, you either need a local license or must wait for the CASP authorization under MiCA, which provides a European passport.

Q: How many PSANs are registered in France?

A: Approximately 100 PSANs were registered by end of 2024. The list is public on the AMF website (Register of Financial Agents - REGAFI).

Practical Questions

Q: What legal structure should a PSAN have?

A: The legal form is unrestricted (SAS, SARL, SA...). The SAS (simplified joint-stock company) is the most common due to its flexibility. Sole proprietorship is theoretically possible but rare in practice.

Q: Is there a minimum capital requirement?

A: The PSAN regime does not set a minimum capital requirement. In practice, the AMF reviews the financial resources against the projected activity. MiCA will impose minimum thresholds (EUR 50,000-150,000).

Q: Can PSAN be combined with other licenses?

A: Yes, some entities combine PSAN with ISP (investment service provider), EMI (electronic money institution), or PI (payment institution) licenses.

Compliance Questions

Q: What happens in case of non-compliance?

A: The AMF can impose sanctions: warning, reprimand, temporary ban, fine (up to EUR 100 million or 15% of turnover), withdrawal of registration.

Q: Is the PSAN liable for client losses?

A: The PSAN must implement adequate protection measures. Its liability may be engaged in case of fault (security failure, negligence). Optional approval requires professional liability insurance.

Conclusion

PSAN registration remains the mandatory pathway for legally providing custody and fiat buy/sell crypto services in France. With the arrival of MiCA, the landscape is evolving toward a harmonized European license, but the compliance fundamentals remain the same.

Key takeaways:

1. Mandatory registration for custody and fiat buy/sell services
2. Substantial requirements: AML/CFT, cybersecurity, governance
3. Long timelines: 9-18 months on average
4. Significant costs: EUR 150,000-400,000 in the first year
5. MiCA transition: start preparing now for the shift to CASP
6. Competitive advantage: compliance as a differentiator

Recommendations for project founders:

• Anticipate timelines (start 18+ months before launch)
• Surround yourself with specialized advisors (lawyers, compliance experts)
• Budget compliance as a strategic investment
• Aim for excellence from the start (not the bare minimum)
• Prepare for the MiCA transition in parallel
• Comprehensively document all procedures

The PSAN status, despite its constraints, is a mark of seriousness and sustainability in an industry where trust is essential.

Related Articles - Professional Compliance

Complete your reading with our compliance series:

• Travel Rule: PSAN Compliance -- Traceability obligations
• AML/CFT Crypto: Professional Guide -- Anti-money laundering
• MiCA Compliance: CASP Preparation -- European transition
• Institutional Custody Comparison -- Custody solutions

Additional Resources

Topic	Article
Regulation	Travel Rule: Transfer Tracing
DAC8	DAC8: Automatic Exchange of Information
AMLR	AMLR: End of Anonymous Payments
France 2026	Financial Sovereignty

Article updated in December 2025. The information presented is for educational purposes and does not constitute legal advice. Consult a qualified professional for your specific situation.