Chainalysis Reports High Levels of Crypto Tax Non-Compliance in France

Chainalysis has revealed that France is experiencing a significant gap between its estimated taxable cryptocurrency activity and the actual amounts reported by taxpayers. The firm projects that taxable crypto activity in France will reach approximately $9.4 billion by 2025, yet only €368 million was declared by taxpayers for the 2024 income year. This stark contrast highlights a potential non-compliance rate exceeding 90%, a trend that aligns with Chainalysis' global findings indicating that only about 14% of potentially taxable on-chain activity is expected to comply with new reporting frameworks.

The estimated taxable crypto activity in France includes $2.5 billion from capital gains, $1.7 billion from income generated through activities such as mining and staking, and $5.2 billion from payments. In comparison, the number of individuals reporting crypto gains has been low, with only 24,000 taxpayers declaring net gains in 2024, a decrease from roughly 7,700 taxpayers reporting in the previous year.

New regulations under the EU's DAC8 directive will require crypto service providers in EU member states to collect detailed user data and transaction records starting January 1, 2026. These providers will be obligated to report this information to tax authorities, with the first data exchanges scheduled for September 30, 2027. However, experts warn that significant enforcement gaps will persist, particularly concerning self-custody wallets and decentralized finance transactions that operate without intermediaries. France currently imposes a flat tax rate of 31.4% on net capital gains from digital asset disposals, with a small annual exemption for total disposals under €305.

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Source: KLEA News