TLDR: Crypto-asset service providers in France must report to the tax authorities the transactions carried out by their users, under specific conditions (approval, tax residence, establishment or management in France, or local branch). The obligation applies to users resident in France or in a partner state, as well as to passive non-financial entities controlled by residents. The report includes user identification data and controlling persons, as well as transaction details. Exemptions exist for certain entities (listed, public, etc.).
Who is subject to the reporting obligation?
Crypto-asset service providers must file a declaration if they meet at least one of the following conditions:
- Approval by French authorities or notification to provide crypto-asset services;
- Tax residence in France;
- Incorporation under French law, with legal personality or tax declaration obligation in France;
- Management from France;
- Habitual place of business in France;
- Execution of transactions via a branch established in France.
The obligation does not apply if the provider has its tax residence in a partner state or territory and fulfills equivalent reporting obligations there.
Which users must be reported?
The declaration concerns crypto-asset users who:
- Are resident in France or in a partner state or territory;
- If they are passive non-financial entities, are controlled by at least one natural person resident in France or in a partner state.
Excluded from the reporting obligation are:
- Entities whose shares are listed on a regulated stock market or linked to such an entity;
- Public entities;
- International organizations;
- Central banks;
- Financial institutions whose income mainly comes from investment, reinvestment, or trading of financial assets or crypto-assets.
What information must be reported?
For each crypto-asset user, the declaration must include:
- Their tax identification number (if available);
- Their address;
- Their state(s) or territory(ies) of residence.
For natural persons controlling a crypto-asset user, the declaration must also include:
- Their tax identification number (if available);
- Their position;
- Their address;
- Their state(s) or territory(ies) of residence.
Which transactions are covered?
The declaration must cover the following transactions carried out by each user:
- Exchanges between different types of crypto-assets or between crypto-assets and currency issued by a central bank;
- Transfers of crypto-assets to or from an account or address owned by the user.
What are the provider's obligations?
The provider must:
- Identify users carrying out reportable transactions and collect their tax residence data and, where applicable, their tax identification number;
- Verify the reliability of the collected information;
- Keep a register of the steps taken and the information obtained;
- Provide each user or controlling person with the information transmitted to the tax authorities concerning them, before the declaration is filed;
- Block access to reportable transactions if the user does not provide the necessary information after two reminders and a sixty-day period.
Declaration filing procedures
The declaration must be filed with the tax authorities under conditions and deadlines set by decree.
User obligations
The crypto-asset user carrying out reportable transactions must transmit to the provider the information necessary for the application of Article 1649 AC bis of the French General Tax Code (CGI).