FRANCE Law and Practice Contributed by: Estelle Rigal-Alexandre, Marie Frisch and Mohamed Bouzenada, Soulier Bunch
Taxation of Professional Gains Where crypto-asset transactions are carried out on a professional basis, the resulting gains are taxed under the regime applicable to non-commercial prof- its (BNC). This includes, in particular, income derived from mining or similar activities. Where digital assets are received without consideration (eg, through min- ing), their acquisition cost is deemed to be zero for tax purposes. Reporting Obligations and DAC8 Implementation The regulatory framework has evolved significant- ly with the transposition of the EU DAC8 Directive through the Finance Law for 2025, introducing new reporting obligations applicable to CASPs. As from 1 January 2026, CASPs established in France or in the EU will be required to collect and report detailed information on their users and transactions, including: • exchanges between crypto-assets or between crypto-assets and fiat currency; and • transfers to or from external wallets or accounts. These obligations are specified by a decree of 19 December 2025, which sets out due diligence require- ments, the identification of reportable users and the scope of reportable transactions. Recent legislative developments also indicate a pro- posal to further extend tax transparency obligations. A draft law adopted in first reading in April 2026 pro- vides for additional reporting requirements, including obligations applicable to holders of self-hosted wal- lets exceeding a certain threshold. VAT The French tax authorities have incorporated into national guidance the Hedqvist ruling of the Court of Justice of the European Union (CJEU, 2015). Accord- ingly, the exchange of cryptocurrencies for fiat cur- rency (and vice versa) is exempt from VAT where the crypto-assets are accepted as a means of payment. With respect to utility tokens, the French tax authorities consider that initial token offerings (ICOs) are generally not subject to VAT, due to the uncertainty surrounding the future supply of goods or services. However, when such tokens are subsequently redeemed for identifi-
White papers must therefore include information on the principal adverse impacts of the crypto-asset on the climate and the environment. This includes a description of the consensus mechanism used (eg, proof of work, or proof of take), together with an assessment of its environmental footprint. According to ESMA guidance, this assessment should cover: • the energy consumption of each DLT network node; • the location of the nodes; and • the types of devices used to operate and maintain the distributed ledger. CASPs are also required to publish ESG-related dis- closures in a prominent place on their websites for each crypto-asset they offer. These disclosures must follow the format and indicators specified by the del- egated regulation adopted by the European Commis- sion in December 2024, which includes detailed meth- odologies for calculating energy consumption, energy intensity, and greenhouse gas emissions. Annual energy consumption is the primary metric to be disclosed, with further indicators required for high-impact issuers exceeding predefined thresholds. These obligations aim to ensure greater transparency on the environmental sustainability of crypto-assets and to foster investor awareness of the ecological implications of blockchain technologies. 1.2.4 Tax Personal Income Tax France adopted a dedicated tax regime for digital assets in 2019, following a landmark decision by the Conseil d ’ État in April 2018. Since the Finance Law of 28 December 2018, capital gains realised by individu- als resident in France on crypto-asset disposals are taxable when: • the assets are converted into fiat currency; or • the assets are used to purchase goods or services. These gains are subject either to a 30% flat tax or, upon election, to the progressive income tax scale. French tax residents are required to declare such gains annually and, since 2020, to report any digital asset accounts held, used or closed abroad.
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