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France is grappling with a significant tax issue concerning cryptocurrencies. According to Chainalysis, taxable crypto activity in the country is projected to reach $9.4 billion by 2025 — including $1.7 billion in direct income and $2.5 billion in capital gains. Yet, the amounts actually reported to the tax authorities remain strikingly low in comparison to these figures.
For 2024, only 368 million euros in capital gains have been reported. This figure, highlighted by Chainalysis in its report, is staggering when compared to the potentially taxable 2.5 billion euros in capital gains. The gap is massive. Not subtle, not debatable — just enormous. And it raises a simple question: where is the rest?
More Filers, But Still Not Enough
There is progress, it must be said. In 2023, only 7,700 people declared crypto capital gains in France, totaling 150.8 million euros. A year later, in 2024, this number rose to 24,000 filers and 368 million euros. This is a clear increase, nearly tripling the number of taxpayers involved.
But here lies the problem: even with this progress, the amounts reported remain far from the actual volumes that Chainalysis identifies as taxable. Data for 2025 is not yet available — it will arrive in a few months. So we are still working with partial figures.
Why such a discrepancy? Several likely explanations. First, French tax law in 2025 does not tax crypto-to-crypto exchanges. The same goes for using cryptos to purchase goods or services. This is legal, and it can explain part of the gap between gross activity and reportable amounts. Holders can navigate transactions without triggering a tax obligation as long as they don’t convert to euros with a net gain.
Then there’s self-custody. Chainalysis states clearly: a large portion of cryptos is held directly by their owners, outside official platforms. Self-custody, personal wallets, peer-to-peer transactions. Legal as well. But almost impossible for tax authorities to trace.
DAC 8: Change Coming in 2026
This will change, at least partially. The European directive DAC 8 takes effect in 2026. In practice, crypto platforms registered in the EU will have to disclose all user transactions to tax administrations. Starting in 2027, hiding behind a European exchange becomes much riskier.
No miracle either. DAC 8 does not cover self-custody transactions. Personal wallets remain off the radar. So users who operate directly, without going through a registered exchange, continue to evade controls. The net tightens, but there are still large holes.
This is probably where most of the gap hides. Unregistered platforms, personal wallets, decentralized transactions — all of this remains in the blind spot of tax authorities, and DAC 8 will not fundamentally change that.
DGFiP Hack Complicates Matters
And while the tax authorities seek to collect more data, their own systems are under attack. In August, a hack exposed the tax data of 678,000 taxpayers in France. The DGFiP was affected, with hundreds of thousands of files compromised.
Not an ideal context to ask people to declare more personal information. This is the paradox the administration finds itself in: it wants more transparency, more data, more declarations — but it struggles to secure what it already has. The massive DGFiP leak illustrates this concrete risk well.
For crypto holders already wary of institutions, it’s fuel for the fire. Why provide more data to a system that protects it poorly?
Pressure is mounting on both sides. On one hand, European tax administrations are pushing hard for compliance, with DAC 8 as the main tool. On the other hand, security incidents and the complexity of tax rules hinder the voluntary adoption of transparency. And in the middle, $9.4 billion in taxable activity, of which only a fraction reaches the tax authorities.
The 24,000 filers in 2024 represent real growth. But compared to the scale of the French crypto market, it’s still a drop in the bucket. The 368 million reported against 2.5 billion in potential capital gains — the ratio speaks for itself.
Frequently Asked Questions
What is the total amount of taxable crypto activity in France in 2025?
According to Chainalysis, taxable crypto activity in France reaches $9.4 billion in 2025, including $1.7 billion in income and $2.5 billion in capital gains.
How many people declared crypto capital gains in France for 2024?
For 2024, 24,000 taxpayers declared crypto capital gains totaling 368 million euros, compared to 7,700 people and 150.8 million euros declared for 2023.
What is the DAC 8 directive and when does it take effect?
DAC 8 is a European directive that takes effect in 2026 and requires crypto platforms registered in the EU to disclose users’ transactions to tax administrations, with practical effect starting in 2027.
Why It Matters
The stark discrepancy between projected taxable crypto activity and reported figures underscores significant challenges in tax compliance within the rapidly evolving digital asset landscape. This tax gap not only highlights the potential revenue loss for the French government but also raises concerns about regulatory enforcement and the need for clearer guidelines to ensure that cryptocurrency participants meet their tax obligations. As other countries watch France's approach, this situation could influence global discussions on cryptocurrency taxation and compliance strategies.
