Borrowing Without Selling Your Crypto: How France’s 2025 Regulation Changes the Game

• What's Changing in France's Crypto Loan Regulations?
• Why Is This Regulatory Shift Significant?
• How Do Crypto-Backed Loans Actually Work in Practice?
• What Restrictions Still Apply?
• Who Stands to Benefit From This Change?
• What Does the Future Hold?
• Your Crypto Loan Questions Answered

France has quietly ushered in a financial revolution by allowing crypto assets to serve as loan collateral. While still tightly regulated, this move marks a symbolic step toward mainstream crypto adoption in traditional finance. Let's unpack what this means for investors and the banking sector.

What's Changing in France's Crypto Loan Regulations?

As of 2025, French borrowers can now pledge their cryptocurrency holdings as collateral for loans through approved financial institutions. This Lombard-style crypto credit represents a significant policy shift, though with notable limitations. Only select licensed banks currently offer these products, and regulatory requirements remain stringent.

The new framework treats crypto similarly to traditional securities in lending scenarios. Investors can access liquidity for major purchases like real estate or business ventures without liquidating their digital assets. According to TradingView data, this comes as bitcoin maintains relative stability above $60,000, making such collateralized loans increasingly attractive.

Why Is This Regulatory Shift Significant?

Ambroise Helaine, France Director at Bybit EU, explains: "This isn't a revolution in daily practice yet, but it's a watershed moment symbolically. Having legal recognition that crypto can function as patrimonial value - not just speculative assets - changes the narrative fundamentally."

The European regulatory approach remains cautious, requiring banks to fully cover crypto-backed loans with equivalent fiat reserves. This conservative stance currently limits loan volumes but establishes important precedent. CoinMarketCap analysts note similar movements in Switzerland and Singapore, though France's approach uniquely integrates crypto into existing banking frameworks.

How Do Crypto-Backed Loans Actually Work in Practice?

Implementation faces multiple hurdles. Paul Bureau, Digital Assets Product Director at Delubac & Cie, details their approach: "We only accept highly liquid, large-cap assets like Bitcoin or Ethereum. Every transaction requires complete fund traceability, and we apply safety margins adjusted for crypto's volatility."

Technical infrastructure presents another challenge. Lenders need real-time valuation systems and automatic liquidation triggers during price drops - requiring 24/7 monitoring capabilities. Custody solutions must meet strict security standards, typically involving specialized digital asset platforms partnered with banks.

What Restrictions Still Apply?

The regulatory fine print contains several limitations:

• Banks must hold 1:1 fiat reserves against crypto loans
• Only accredited institutions can offer these products
• Eligibility depends on borrower profiles and portfolio quality
• Approved cryptocurrencies are limited to major, liquid assets

These constraints currently make crypto loans less profitable for banks than traditional lending products. However, industry observers anticipate gradual easing as regulators gain comfort with digital assets.

Who Stands to Benefit From This Change?

While initially serving niche clients, this framework creates opportunities for:

• Long-term crypto holders seeking liquidity
• Real estate investors avoiding capital gains taxes
• Business owners funding ventures without divesting
• Banks targeting crypto-native clientele

The BTCC research team notes particular interest from tech entrepreneurs and younger investors who hold significant crypto wealth but need traditional financing options.

What Does the Future Hold?

Current adoption remains limited, but the legal precedent matters more than immediate volume. As European regulations potentially evolve, crypto-backed loans could become standard wealth management tools. French banks specializing in digital assets may gain first-mover advantage in this emerging market segment.

This article does not constitute investment advice. Crypto assets remain volatile, and loan terms vary significantly between institutions.

Your Crypto Loan Questions Answered

Which French banks offer crypto-backed loans?

As of 2025, only a handful of licensed institutions like Delubac & Cie provide these products, typically requiring minimum collateral of €50,000 in approved cryptocurrencies.

How does crypto collateral valuation work?

Lenders apply haircuts (typically 30-50%) to account for volatility and monitor prices in real-time, requiring additional collateral or initiating liquidation if values drop below thresholds.

Are crypto loans available to non-residents?

Current regulations primarily serve French residents and taxpayers, though some exceptions exist for EU citizens with substantial French banking relationships.

What happens if my collateral loses value?

Banks will issue margin calls requiring additional collateral. If unmet, they may liquidate portions of your holdings to maintain the loan-to-value ratio.