French Government Tightens Screws on Foreign Ownership of Sensitive Firms

France has lowered its foreign ownership threshold for sensitive firms to 10%, making it harder for non-European investors to acquire control. This change, enacted on August 2, 2026, affects various sectors, including cryptology, which is explicitly listed as a sensitive sector. Cryptology encompasses blockchain infrastructure companies, encryption firms, and potential Web3 ventures.

The previous threshold of 25% has been reduced to 10%, requiring the French Economy Ministry's approval for deals that would have previously flown under the radar. This change affects non-European investors; EU and European Economic Area investors face different, less restrictive thresholds. The decree does not alter existing rules for these groups.

Authorization requests are handled by the Economy Ministry, with fast-tracked reviews available within 10 business days. The new rules primarily target mid-stage crypto companies in France that rely on global capital markets for growth funding. Early-stage startups may avoid this requirement as they typically raise smaller rounds.