Crypto Taxes in France: What You Need to Know

In 2024, France continues to solidify its position as a leader in cryptocurrency regulation, aligning with the European Union’s broader regulatory framework and implementing specific measures to ensure a secure and transparent environment for digital asset transactions.

Enhanced Regulations for Digital Asset Service Providers (DASPs)

France’s financial regulator, the Autorité des marchés financiers (AMF), has fully aligned its registration requirements for Digital Asset Service Providers (DASPs) with the Markets in Crypto Assets (MiCA) regulation, which took effect across Europe on June, 2023. The updated requirements include:

  1. Enhanced Security and Internal Controls: DASPs are now required to implement advanced security measures and robust internal controls to effectively manage conflicts of interest and ensure the protection of client assets.
  2. Transparent Pricing Policies: Providers must maintain full transparency by publicly disclosing their pricing policies. This initiative aims to foster a fairer and more understandable pricing environment for users.
  3. Client Asset Protection: Firms are strictly prohibited from utilizing client assets without obtaining explicit prior approval from their clients, significantly bolstering the protection of customer funds.

These measures are designed to create a more secure and transparent framework for digital asset transactions, thereby enhancing trust and safety for all users in the digital asset market.

Crypto Taxes in France

In France, crypto assets are treated as moveable assets, similar to stocks and bonds, by the General Directorate of Public Finances (DGFiP). Although not legally recognized as currency, crypto assets are accepted as a medium of exchange.

Taxes are incurred only when converting crypto to fiat or when earning profits from activities like mining. Transactions such as buying, trading, swapping, or exchanging crypto between wallets do not trigger taxable events.

From January 1, 2023, the distinction between professional and occasional traders is not significant, as the flat tax rate of 30% applies to all crypto sales. Detailed rules on calculating capital gains include considerations for acquisition costs and sales-related expenses, emphasizing the importance of thorough documentation.

Can DGFiP track your crypto holdings?

Contrary to the belief that crypto is anonymous, tax authorities across Europe have started regulating centralized crypto exchanges. Under the European Union’s Sixth Anti-Money Laundering Directive, companies providing financial services to cryptocurrency users must comply with stringent customer identification regulations. This data is shared among EU member states to combat money laundering and illegal activities.

If you consider not reporting your crypto taxes to the DGFiP, be aware that tax evasion penalties in France can include fines up to €500,000, up to 5 years of imprisonment, and penalties up to 80% of the tax due.

How Businesses can Accept Crypto Payments in France

Accepting cryptocurrency payments can significantly enhance business operations in France by providing additional payment options and attracting a broader customer base. NOWPayments offers a seamless solution for businesses to accept crypto payments. Here’s how to get started:

  1. Sign Up on NOWPayments: Create an account on the NOWPayments website and add your payout wallet.
  2. Choose the Crypto Payment Tools You Need:
  3. Select Cryptocurrencies: Choose the cryptocurrencies you want to accept, including Bitcoin, Ethereum, and many others.
  4. Think About Safety: Enable 2FA for enhanced security and save your backup code or use a secure app.
  5. Start Accepting Payments: Once integrated, you can begin accepting crypto payments from customers. NOWPayments will handle the conversion and transfer the funds to your designated wallet.

NOWPayments offers a secure, easy-to-use platform with low fees, making it an excellent choice for businesses in France looking to embrace cryptocurrency payments.