Borrow Without Selling Your Crypto: What France’s New 2025 Regulation Changes

• How Does Crypto-Backed Lending Work in France?
• Why Is This a Big Deal?
• What Are the Practical Hurdles?
• Who’s Actually Using This?
• The Bottom Line
• FAQs

France’s financial landscape just got a crypto-friendly upgrade. A recent regulatory shift now allows borrowers to use their digital assets as collateral for loans—a quiet but symbolic step toward integrating cryptocurrencies into traditional finance. While the framework is still restrictive, it’s a game-changer for crypto holders who want liquidity without parting with their bitcoin or Ethereum. Here’s what you need to know.

How Does Crypto-Backed Lending Work in France?

Under the new rules, French residents can now pledge their crypto holdings as collateral for loans, similar to how stocks or bonds are used in traditional Lombard lending. Only a handful of authorized banks—like Delubac & Cie—offer these products, and they’re treading carefully. The catch? Banks must fully cover the loan amount with their own capital due to crypto’s volatility, which limits scalability. For borrowers, though, it’s a win: you can fund a property purchase or business venture without triggering a taxable event by selling your crypto.

Why Is This a Big Deal?

Ambroise Helaine, France director for Bybit EU, puts it best: “This isn’t a revolution in usage yet, but it’s a clear symbolic shift. Legal recognition of crypto as collateral sends a message—digital assets aren’t just speculative toys; they’re legitimate store-of-value tools.” The MOVE aligns with the EU’s gradual embrace of crypto, though regulators still treat it as high-risk. For context, banks must hold €1 in reserves for every €1 lent against crypto, per current prudential rules.

What Are the Practical Hurdles?

Paul Bureau, head of digital asset products at Delubac & Cie, notes that only “highly liquid, large-cap assets like Bitcoin or Ethereum” qualify. Plus, borrowers face strict KYC checks, and custody solutions (often via partnered platforms) must meet banking standards. “Real-time valuation and automated liquidation systems are mandatory,” Bureau adds. “It’s a 24/7 operational headache.” Translation: don’t expect your meme coins to cut it.

Who’s Actually Using This?

For now, it’s niche—think crypto-rich entrepreneurs or investors avoiding capital gains tax. But the potential is there. Imagine collateralizing crypto to finance a startup or even a vineyard in Bordeaux (thisFrance, after all). Long-term, if EU rules relax, this could become a mainstream wealth-management tool. Banks like Delubac are betting on it, targeting clients who straddle crypto and traditional finance.