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Tax audits and crypto-assets in France
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13 October 2025

[White Paper] Tax audits and crypto-assets in France

As procedures multiply and information exchange is set to come into force, ORWL_ is publishing a white paper to help understand and comprehend tax audits relating to crypto-assets in France.

For the year 2021, the Cour des comptes noted that €400 million in capital gains on crypto-assets had been declared in France, even though the estimated amount of capital gains was €3.5 billion.

Crypto-assets have developed very rapidly in a highly uncertain regulatory and tax environment. In the early years, the instability and fragmentation of the sector, as well as the lack of clear rules and guidance from the authorities, forced investors and companies dealing in crypto-assets to operate in a relatively grey area.

That time is coming to an end.

Crypto-asset service providers are subject to demanding and harmonised regulations within the EU; the DAC8 (EU) and CARF (global) mechanisms will require platforms to automatically report their users’ transaction histories from 2026 onwards; and the tax authorities’ powers of control over crypto-assets were strengthened in 2025.

This publication aims to shed light on the conditions and challenges of tax control in relation to crypto-assets.

Excerpts

Tax audits and crypto-assets in France - Excerpts

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Our services in tax audits and crypto-assets

Since 2018, ORWL has been the French leader in supporting Web3 and crypto projects.

The firm stands out for its recognized experience, in-depth understanding of the sector’s challenges, and multidisciplinary approach.

The complementary nature of its teams enables the firm to advise companies and individuals on securing their Web3 projects and optimizing their tax situation with a global vision. The firm is also able to represent them in any disputes that may arise from their activities.

With our extensive experience, we regularly assist investors and projects in:

  • the tax structuring of their business and the optimization of their investments;
  • the regularization of their income received in cryptocurrencies;
  • the defense of their interests during tax audits;
  • the defense of their interests before the tax authorities and the courts.

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FAQ about tax audits and crypto assets

A tax audit on crypto assets is a verification carried out by the tax authorities to ensure that income and capital gains from cryptocurrency activities (trading, NFTs, staking, etc.) have been declared and taxed.

Since 2025, audit powers have been strengthened, and from 2026, platforms will be required to automatically transmit transaction histories (DAC8 and CARF regulations). Tax audits of crypto assets are therefore likely to increase significantly.

Any investor or company holding, trading, or using crypto-assets may be affected:

  • individuals who frequently sell or arbitrage,
  • crypto-asset service providers (CASP),
  • issuers of tokens or NFTs,
  • French companies with flows involving foreign platforms.

The risks range from tax adjustments to heavy penalties:

  • late payment interest (0.2% per month),
  • penalty charges of 10% to 80% depending on the gravity of the matter,
  • fines for undeclared foreign accounts (up to €1,500 per account per year),
  • and even criminal penalties in cases of deliberate fraud.

Tax authorities now cross-reference multiple sources:

  • banking data and transfers to platforms,
  • reports from tax advisors,
  • exploitation of public data (social networks, marketplaces, blockchains),
  • and, from 2026, automatic reporting by crypto platforms thanks to European and international mechanisms.

If you receive a verification notice, it is essential to:

  • Gather all supporting documents (transaction history, exchange statements, proof of purchase prices);
  • Analyze on-chain and off-chain flows to identify taxable transactions;
  • Seek assistance from a tax lawyer who is familiar with the specificities of digital assets.

It is essential to define a strategy in advance, based on the risks involved.

If you receive a letter from the authorities asking you to justify or regularize foreign accounts (crypto platforms, custodial wallets, banks), you must act quickly:

  • Do not ignore the request: silence often results in automatic taxation and a surcharge of up to 80%.
  • Gather evidence of ownership and origin of funds: platform statements, screenshots, deposit certificates, proof of purchase of crypto assets.
  • Have the situation assessed by a tax lawyer to determine whether it is a simple regularization (unintentional omission) or a risk of alleged fraud.
  • Consider a spontaneous regularization under supervision, which can significantly reduce penalties.

In 2025, the tax authorities may impose a 60% tax on unjustified foreign assets dating back up to 10 years. Rapid regularization allows you to secure your situation before any litigation.

The standard recovery period is 3 years.

However, it can be extended to 10 years in certain cases:

  • undeclared activity (professional trading),
  • undeclared foreign crypto accounts,
  • fictitious tax domicile.

After a tax audit, taxpayers have several options for appeal:

  • Administrative phase: before the tax authorities, observations, hierarchical appeals, departmental contact person;
  • Litigation phase: complaint, referral to the administrative court, then appeal and cassation.

The assistance of a specialized law firm allows for the structuring of a defense, the contesting of penalties, and the exploitation of the margins of interpretation of tax law relating to digital assets.

A few precautions can help reduce the risk of (and in the event of) an audit:

  • Declare your foreign crypto accounts each year (form no. 3916-bis).
  • Keep accurate records of transactions (price, date, platform).
  • Declare taxable transfers on form no. 2086.
  • Anticipate taxation on token income or staking/airdrop transactions.
  • Have your situation audited before 2026 to correct any anomalies.

This white paper provides, free of charge:

  • a comprehensive analysis of tax audits applied to crypto assets,
  • a clear summary of procedures, penalties, and remedies,
  • practical cases and points of attention for investors and companies in the industry.
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