France has been evolving its regulatory and banking infrastructure to respond to the growth of crypto assets and digital payments across the globe. Major banks like BNP Paribas and Credit Agricole are exploring facets of tokenization, custody and digital asset service extensions. At the same time, the EU’s Markets in Crypto-Assets Regulations (MiCA) has also started to clarify and better regulate its rules for stablecoins and crypto services in Europe. In this context, businesses operating in France and the ones dealing with French Counterparts can consider collecting USDT (Tether) payments from clients or pay out to vendors or contractors in USDT, ultimately converting it to euros (EUR) via banking partners and platforms. While direct bank handled USDT transactions don’t operate officially in France, an architecture combining crypto rails blended with bank rails is feasible and beneficial.
In this article, let’s find out about how this combination might work, what are the benefits, roles of stakeholder banks like BNP Paribas and Credit Agricole, aspects of EUR conversion and practical implementation of these notions!
Understanding the banking infrastructure of France
The banking landscape mainly comprises of BNP Paribas and Credit Agricole directly impacting the digital payment ecosystem of the country;
- BNP Paribas has publicly explored stablecoin and digital asset projects. One such initiative included the entity joining a consortium of international banks which explored issuance of 1:1 reserve backed digital assets - signifying the active initiative and participation in digital money development.
- Crédit Agricole’s asset-servicing arm (CACEIS) has registered for PSAN (digital-asset service provider) status in France. This directly connects the banking system with custodial and tokenization services.
- However, other traditional French banks are still in a nascent space with respect to crypto business evolution.
To summarise, banks may not offer USDT settlement services in the country yet, they are actively engaging in tokenization and stablecoin frameworks. This sets a base for businesses to work via crypto gateways which partner with banks for fiat settlements.
Collection of USDT in France
Let’s break-down the steps of how a French based merchant or service provider would receive USDT payments;
- Set up a USDT capable wallet of crypto gateway
The merchant, first of all, registers with a compliant crypto payment provider that supports USDT on chains and offers merchant tools like invoicing, wallets, reporting etc. The provider must also support French/KYC/AML compliance in order to be legally authorised.
- Generate a receiving address or a payment link
On invoice or checkout, one needs to display USDT payment amount, wallet address or QR code (designated payment address). Once done, the payer can send USDT across, whether locally or internationally.
- On-chain conformation and invoice settlement
After blockchain confirmation, the system marks the invoice as paid and the merchant receives USDT in their wallet.
- Conversion to EUR and deposit into a French bank account
The merchant then uses a local exchange or service to convert USDT to EUR. EUR is then deposited into their bank accounts like BNP Paribas or Credit Agricole. Once done, the funds can then be used for domestic payments, payroll, business utilities, etc.
- Accounting, record keeping and compliance
It's always advised to keep detailed transaction logs - wallet address, hash, amount, conversion specifics, deposit etc. Under the French regulations, reporting of intangible (digital) assets is mandatory.
The benefits of this system include the independence of global acceptance from clients paying in USDT, speed and cost efficiency of crypto rails and ability to settle in EUR locally. While the benefits outweigh, it’s always important to take into consideration, the on/off ramp costs, regulatory clarity and bank’s willingness to accept deposits linked to crypto assets.
Paying Out USDT from France
If a business in France needs to carry out payouts for vendors, contractors, suppliers or freelancers in USDT, the following architecture applies to be helpful;
- Convert EUR or other currency/funds to USDT
The first step for the business is to purchase USDT via an exchange or a gateway by converting EUR into USDT.
- Send USDT to recipient’s wallet
Once the vendor provides their USDT wallet address, the business can initiate the transfer. Once done, it confirms on blockchain.
- Recipeunt’s conversion option
The vendor may convert the received USDT to Fiat currency (if required) and deposit into their bank accounts.
- Internal compliance checks and record keeping
It’s important to check AML/KYC regulations and obligations, especially the ones associated with large payments.
These settlements benefit the parties by providing lower costs and faster settlements backed by blockchain transparency. It’s always important to consider vendor’s willingness to use crypto, conversion liquidity and regulatory and reporting requirements.
Converting USDT to EUR and Bank Settlement
Key steps involved in converting USDT to EUR include;
- Exchange, on/off-ramp partner
The exchange partner must support USDT/EUR conversions and be regulated under the French/EU regime.
- Bank deposit
Once converted to EUR, funds need to land in a French-bank account. The policies of banks vary across France making them subject to specific needs and regulations for crypto linked flows.
- Costs and timing
One needs to consider the blockchain network fee, exchange spread and bank deposit and clearing time.
- Regulatory clarity
Under MiCA and French laws, stablecoins must comply with new rules. USDT issuance can be delisted if non complaint.
- Accounting and taxation
Gains or conversions are taxable in most cases. Treat crypto asset holding appropriately in the country’s tax filings.
Conclusion
For French businesses looking for modernization in their asset holding, payouts and collections, USDT (Tether) rails clubbed with local banking settlement via complaint institutions like BNP Paribas or Crédit Agricole, offers a feasible and highly adaptable model. While payments can be accepted in USD value and converted to EUR locally, payouts can also be treated with the same flexibility. Paying and receiving funds in USDT and other digital assets offers cost efficiency, reduced speed and transparent on-chain settlements. However, it’s important to comply with French regulations, KYC/AML requirements and recording and reporting of transactions. If you’re unsure which foot to put forward while starting with USDT transaction journey for your business, contact experts at TransFi and find the best viable solution.
To know more, also read: USDT Payout and Collection in Brazil – via PIX and Itaú Unibanco
Frequently asked questions (FAQs)
- Is it legal for businesses in France to receive USDT payments?
Yes, via a wallet or crypto payment gateway that supports USDT, businesses can receive USDT in France and then initiate conversion to EUR and settle via local banks.
- Are there any crypto-friendly French banks?
Yes, banks are gradually and cautiously moving towards crypto modernization, like ‘Hello bank! by BNP Paribas’. Yet many of them are conservative when dealing with crypto business flows.
- How fast are USDT payouts in France?
On-chain transfers may take seconds to minutes while conversion and bank deposit may take hours to a business day depending on providers and bank settlement timings.
- Can one pay vendors in France in USDT?
Yes, if the vendor can receive USDT and optionally convert to EUR, one can initiate a USDT transfer; whereas the vendor handles conversion and deposit.
5.Do I need to register as a crypto-asset service provider (PSAN) in France?
Only if you are providing services (custody, exchange) to others, should you register as a PSAN. As a merchant receiving/placing payments, you can use a registered gateway.
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