France Cracks Down on Unregistered Crypto ATMs: What You Need to Know

France's Regulatory Action on Crypto ATMs

French regulators have banned unregistered crypto-asset ATMs operating within the country, focusing on businesses providing illegal digital asset services. This decision stems from growing concerns about money laundering and illegal activities associated with crypto ATMs that enable cash transactions for digital assets like Bitcoin.

The Autorité des Marchés Financiers (AMF) collaborated with the Paris inter-regional jurisdiction (JIRS) to launch investigations, leading to search and seizure operations in June and December 2024.

Mandatory Registration for Crypto ATMs

Under French law, crypto-asset ATMs must register as digital asset service providers. The AMF highlighted that non-compliance could lead to severe penalties, including up to two years in prison and fines reaching 30,000 euros. As the MiCA regulation approaches its implementation deadline on December 30, 2024, service providers are urged to ensure compliance with existing laws.

Preparing for MiCA

The upcoming MiCA regulation aims to standardize crypto regulations across Europe, emphasizing the importance of compliance for digital asset operators. The AMF has warned that failure to adhere to regulatory requirements may expose users to financial risks and illegal transactions.

The AMF encourages digital asset service providers to verify their registration status against its whitelist of approved operators to avoid penalties and ensure a secure operating environment.