For years, crypto-assets were seen as a blind spot for tax administrations: anonymous wallets, foreign platforms, transactions outside traditional banking systems. Many investors assumed that gains in Bitcoin or Ethereum could remain hidden. Those days are over.

In 2025, the French tax administration (DGFiP) has developed specific tools and procedures to monitor crypto-assets. From strict reporting obligations to cross-border information sharing, crypto is now fully integrated into the scope of tax audits. The rule is clear: crypto-assets must be declared, justified, and traceable.

Strict reporting obligations

The first line of defense for the tax authorities is reporting:

• French residents must declare all crypto accounts held abroad (form 3916-bis).

• Accounts with foreign digital asset service providers (DASPs) must also be disclosed.

• Failure to declare may trigger fines of €750 per account, rising to €1,500 if the account is in a non-cooperative jurisdiction.

In addition, disposals and capital gains must be reported annually through the income tax return, using a dedicated annex. Even unintentional omissions can lead to adjustments.

Powerful investigative tools

The DGFiP has wide-ranging powers to detect irregularities:

• Requests for justification (Article L16 of the French Tax Procedure Code) allow inspectors to demand transaction histories and explanations for crypto flows.

• Automatic taxation (Article L73) applies when responses are insufficient, with penalties up to 80% for fraudulent behavior.

• In the context of a personal tax audit (ESFP) or a corporate audit, authorities may cross-check declared income against lifestyle indicators and crypto activity.

In practice, crypto is treated like any other asset: unexplained wealth or inconsistencies between reported income and spending can lead to reassessment.

Cooperation with TRACFIN and international authorities

The DGFiP does not act alone. Crypto flows are monitored by TRACFIN (the French anti-money laundering unit) and specialized police and gendarmerie services.

At the international level:

• The EU DAC8 Directive requires platforms to automatically transmit client data to tax administrations.

• The OECD’s Crypto-Asset Reporting Framework (CARF) aims to create a global standard, extending the automatic exchange of information that already exists for bank accounts.

As a result, the opacity once associated with crypto holdings abroad is disappearing rapidly.

Seizures and enforcement measures

Crypto-assets are no longer beyond reach in enforcement:

• Administrative seizures can target assets held with French-registered platforms.

• International cooperation enables asset freezes abroad.

• French courts have already validated seizures of crypto wallets in both fiscal and criminal cases.

The principle is simple: crypto is treated as any other asset class, subject to enforcement and recovery procedures.

Professionals and active investors under close scrutiny

While occasional investors face reporting duties, professionals and high-volume traders are particularly exposed:

• Mining and professional trading may be requalified as hidden business activity, leading to corporate income tax, VAT, and social security liabilities.

• Significant tax shortfalls (over €100,000, or €50,000 with aggravating circumstances) must be transmitted automatically to the public prosecutor, opening the door to criminal prosecution.

Conclusion

Crypto-assets are no longer outside the reach of the French tax authorities. Declarations, justifications, cross-border reporting, seizures: the DGFiP now has the means to monitor and sanction non-compliance.

For investors and entrepreneurs, the message is clear: crypto is fully taxable, and transparency is unavoidable.

At Qualifisc, we assist individuals and companies in securing their crypto positions, complying with reporting obligations, and preparing defenses in the event of a tax audit.