France has lowered the threshold for foreign ownership in key strategic sectors from 25% to just 10%, forcing non-European investors to seek government approval even for relatively small stakes. The decree, effective from August 2, 2026, targets firms involved in cryptology, AI, semiconductors, cybersecurity, and other critical technologies.
The change puts crypto companies dealing with encryption and blockchain infrastructure directly in the spotlight, significantly raising regulatory hurdles for foreign investors. Previously, stakes below 25% could be acquired without prior approval, but the new rule means foreign entities must now navigate heightened government scrutiny at a much earlier stage of investment.
France first introduced this 10% limit temporarily during the COVID-19 crisis to prevent opportunistic takeovers of vulnerable firms. That temporary measure became permanent in early 2024, and with this latest decree, it now applies to a broader range of companies, including those listed on foreign exchanges. EU and European Economic Area investors, however, still face more lenient conditions.
The practical impact is clear: investors eyeing critical French sectors must adjust their strategies and anticipate a tougher approval process. For the crypto industry, this could slow foreign capital inflows and complicate expansion plans for startups focused on blockchain and cryptologic services.
This material is for informational purposes and does not constitute financial advice.
