Transparency and Security
Origin of Funds
Transfer and Safeguarding
Conversion into Euros and Payment
The acquisition of real estate financed wholly or in part by cryptocurrencies is now a reality. Our office stands at the forefront of this development and is ready to assist you in bringing such projects to fruition.
The implementation, on 1 January 2025, of the European MiCA Regulation (Markets in Crypto-Assets) will provide a clear and harmonised legal framework for the use of crypto-assets. Combined with the existing rules on anti-money laundering and counter-terrorist financing, this framework enables these new financing methods to be integrated into a secure and legally compliant environment.
Our office is at your disposal to advise you and to secure each stage of your real estate investment, whether financed wholly or partly through cryptocurrency.
Transparency and security at the heart of the transaction
To guarantee a smooth, secure and transparent process for the purchaser, the seller, and all parties involved, our office collaborates with leading partners in crypto-asset transaction security, duly recognised by the French Financial Markets Authority (AMF).
Rigorous verification of the origin of funds
The first and undoubtedly most essential step is to establish the legitimacy of the funds intended for the acquisition, in strict compliance with French anti-money laundering and counter-terrorist financing (AML-CTF) regulations.
For this purpose, an eligibility agreement is entered into with a Digital Asset Service Provider (Prestataire de Services sur Actifs Numériques – PSAN), in order to carry out the required checks. These verifications include:
Identification of the purchaser through KYC procedures;
Blockchain transaction analysis (on-chain analysis);
Examination of supporting documents provided by the purchaser.
The transaction may proceed only once the origin and legality of the funds have been duly established.
Transfer and safeguarding of funds
For the continuation of the transaction, a service agreement with an exclusive management mandate is entered into. Under this framework, a unique blockchain address is generated solely for this transaction, enabling the purchaser to deposit their crypto-assets securely.
The funds remain at this address for the entire duration of the transaction, in accordance with the terms of the signed agreement, and a deposit certificate is issued to all parties concerned.
Conversion into euros and payment of the purchase price
To safeguard the seller’s interests and ensure secure accounting treatment, the funds deposited in crypto-assets are converted into euros before being transferred directly to our CDC account.
This operation is initiated exclusively by our office (either upon payment of the deposit or at the call for funds for the final signing) and is carried out in strict compliance with the service agreement entered into between the purchaser and the Digital Asset Service Provider (PSAN).
FAQ
What is a crypto-asset?
A crypto-asset is a digital asset secured by blockchain technology, which may serve as a means of payment or investment. In the real estate context, it can wholly or partly finance the acquisition of a property.
Is real estate purchase using crypto-assets legal?
Yes. Since the coming into effect of the European MiCA Regulation on 1 January 2025, a clear legal framework governs the use of crypto-assets in real estate transactions, subject to compliance with anti-money laundering and counter-terrorist financing (AML-CTF) obligations.
How is the volatility of crypto-assets managed?
A security margin is calculated based on the crypto-assets used and prevailing market conditions, in order to guarantee the availability of the required euro amount to complete the transaction. After signature of the deed, any unused crypto is returned to the purchaser, thereby ensuring stability for all parties.
How are the funds safeguarded and transferred during the transaction?
The funds are held by a partner registered as a Digital Asset Service Provider (Prestataire de Services sur Actifs Numériques – PSAN) with the French Financial Markets Authority (AMF), thereby ensuring both security and regulatory compliance. For each transaction, a unique blockchain address is created, enabling the purchaser to deposit their crypto-assets securely. The funds remain at this address for the entire duration of the transaction, and a deposit certificate is issued to all parties concerned.
What happens if the transaction is cancelled?
If the transaction does not go ahead, or if a suspensive condition is not fulfilled, the funds deposited are returned to the purchaser in their original form, without conversion, in accordance with the provisions of the service agreement.
What are the implications for the seller?
None. The seller receives payment in euros, as in any traditional transaction, and both the preliminary agreements and deeds of sale remain unchanged.
What are the implications for the estate agency?
None. Its AML-CTF (Tracfin) obligations remain unchanged. The agency may provide the deposit certificate evidencing the due diligence carried out and will be remunerated in euros through our accounts department, under the usual arrangements.
