With the publication in December 2023 of a report on crypto-assets, the French Court of Audit (Cour des comptes) is sounding the alarm: the rapid growth of the crypto market, combined with regulatory and tax frameworks deemed insufficient, is creating a major “blind spot” for the tax authorities.
As the European DAC8 directive and the “travel rule” come into force, the tax authorities (administration fiscale) are about to gain unprecedented visibility, which could lead to an increase in tax audits.
This article breaks down the findings, the recommendations and the risks ahead, to help every crypto holder plan ahead.
In brief
- The Cour des comptes warns of insufficient regulation of crypto‑assets, which creates a tax blind spot.
- The crypto‑asset market has grown sharply, but few taxpayers declare capital gains.
- The current framework (PSAN) is deemed insufficient, with checks that are too weak and risks of fraud.
- The recommendations include stronger checks and a revision of the tax framework for better regulation.
- With DAC8 and the travel rule coming into force, it may be useful to take stock of one’s crypto holdings, ideally with a lawyer.
Contents
- 1. Why did the Cour des comptes look into crypto‑assets?
- 2. What is the current framework (PSAN) — and why the Court considers it insufficient
- 3. The recommendations of the Cour des comptes
- 4. What this means in practice for users
- 5. Why the timing is critical
- 6. Points to examine today
- 7. Why the Court's scrutiny matters
- Conclusion: a likely turning point — preparing for it with the help of a lawyer
- FAQ
1. Why did the Cour des comptes look into crypto‑assets?
1.1. A booming market — striking figures
The Cour des comptes describes an increasingly large crypto‑asset market. At the end of 2023, the global valuation of crypto‑assets was estimated at 1,100 billion dollars, compared with only 18 billion in 2017.
In France, between 1.5 and 5 million holders are concerned.
In other words, the number of people involved is far from marginal.
1.2. A paradox: strong adoption but still light taxation and regulation
Despite this massive adoption, the report notes a striking gap between the size of the market and the data available to the tax authorities.
In 2021, only 20,000 taxpayers declared capital gains arising from crypto‑assets.
This means that a large proportion of crypto holders do not appear in the tax records — a genuine “blind spot”.
2. What is the current framework (PSAN) — and why the Court considers it insufficient
2.1. The PSAN regime: mandatory registration + optional licence
From 2019 to 30 June 2026, France regulated crypto‑asset service providers through a digital asset service provider regime (prestataires de services sur actifs numériques, PSAN) (replaced since 1 July 2026, the end of the transitional period, by the European MiCA authorisation as a crypto-asset service provider):
- Mandatory registration with the French Financial Markets Authority (Autorité des marchés financiers, AMF)
- Optional licence for those seeking enhanced supervision
2.2. Checks deemed too weak
- Too many unauthorised or foreign-based service providers escape checks.
- According to the Court, self-hosted wallets (self-custody) remain largely invisible to the tax authorities.
Seen by the Cour des comptes as a real risk of fraud, money laundering and non-declaration of gains.
2.3. Risks for investors and for the State
- Money laundering and fraud
- High asset volatility
- Systemic risk if crypto becomes a major means of payment
3. The recommendations of the Cour des comptes
3.1. Strengthening audit resources
- More staff and specialised expertise
- IT tools to trace flows
- Development of national tools for greater independence
3.2. Revising the tax and reporting framework
- Adapting taxation to actual uses
- Obligation to report self‑hosted wallets exceeding a threshold
- Better informing taxpayers of their obligations
3.3. Strengthening the regulation of service providers
- Supervising PSANs and foreign service providers
- Harmonising the national framework with European standards (MiCA)
4. What this means in practice for users
4.1. For holders using PSAN platforms
- Transactions should become increasingly traceable
- Undeclared capital gains should be harder to conceal
- The risk of a tax reassessment increases accordingly
4.2. For holders using self‑hosted wallets
- A reporting obligation is possible in the future
- “Private” use becomes less discreet because of the travel rule
4.3. For occasional investors
- Even small amounts may be concerned
- Ignoring one's obligations is riskier than before
5. Why the timing is critical
- Convergence of European reforms: DAC8, MiCA, travel rule
- Increased visibility and audit capabilities for the tax authorities
- Increased risk of reassessments and large-scale regularisations
6. Points to examine today
- A complete inventory of crypto holdings
- Retrieving historical data (platform exports, transaction histories)
- Checking past returns
- Keeping supporting documents
- Depending on the case, and after analysis with a lawyer, the possibility of a voluntary regularisation
- Keeping track of regulatory developments
- In case of doubt, the advice of a professional, ideally a lawyer
7. Why the Court's scrutiny matters
- The report could encourage the tax authorities to increase the number and effectiveness of audits, against a tight budgetary background.
Conclusion: a likely turning point — preparing for it with the help of a lawyer
The report of the Cour des comptes marks a turning point: the crypto market will soon no longer be a tax “grey area”.
With DAC8 and the travel rule coming into force, three points generally deserve to be examined, ideally with a lawyer:
checking past returns,
documenting transactions,
depending on the case, a possible regularisation.
This is no time for improvisation: depending on the case, acting in advance, with your lawyer, may be preferable to waiting for an audit.
FAQ
What is the DAC8 directive?
DAC8 is Directive (EU) 2023/2226 of 17 October 2023. It provides that crypto-asset service providers collect, since 1 January 2026, information on the transactions of their clients resident in the European Union and pass it on to the tax authorities; the first exchanges between Member States are expected in 2027, in respect of the year 2026. The French tax authorities should thus have information on the disposals and exchanges carried out by taxpayers domiciled in France, including through platforms established in another Member State.
What is the “travel rule”?
This is Regulation (EU) 2023/1113 of 31 May 2023, applicable since 30 December 2024. It requires crypto-asset service providers to transmit, with each transfer, information on the originator and the beneficiary. For a transfer of more than €1,000 to or from a self-hosted wallet, the provider must in principle verify that this wallet does belong to its client.
How are an individual’s capital gains on crypto-assets taxed in France?
In principle, gains made on an occasional basis by an individual domiciled in France, when he or she sells crypto-assets for euros (or another legal tender currency) or uses them to pay for goods or services, are subject to the single flat-rate levy of 31.4% (12.8% income tax and 18.6% social security contributions), unless the progressive scale is opted for. Exchanges between crypto-assets are in principle neutral, and disposals are exempt where their total annual amount does not exceed €305. The details are set out on the page dedicated to the taxation of cryptocurrencies.
