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Deputy Paul Midy is raising concerns. According to him, the French legal and tax framework surrounding cryptocurrencies is riddled with inconsistencies that hinder the industry and expose digital asset holders to real risks. And he doesn’t mince words.
Why It Matters
This criticism from Deputy Paul Midy highlights significant challenges facing the French cryptocurrency market, which could impede its growth and adoption. By addressing inconsistencies in the legal and tax framework, as well as cybersecurity vulnerabilities, France risks losing its competitive edge against other jurisdictions that offer clearer regulations and stronger protections for digital asset holders. Such obstacles could deter investment and innovation within the French crypto sector, ultimately affecting the broader European cryptocurrency landscape.
The criticism targets two distinct fronts. On one hand, a tax and legal regime he considers confusing, discouraging, and poorly coordinated. On the other, a level of protection against cyberattacks he sees as clearly insufficient. For Midy, the two problems feed into each other: regulatory uncertainty discourages investment, and the lack of cybersecurity drives away those who might still want to take the plunge. All this in a fast-moving sector where France risks missing the boat if it doesn’t react.
Not very reassuring.
A Tax Maze That Discourages Investors
The heart of the problem, according to Midy, is complexity. The tax rules applicable to cryptocurrencies in France are, in his view, difficult to read, difficult to apply, and often contradictory. An investor who wants to operate within the rules faces a maze of provisions with no clear overall logic. The result: many give up or set up elsewhere.
There’s also a coordination problem. Midy points to the lack of coherence among the different entities involved in regulating digital assets in France. Each does its own thing, and the whole does not form a readable framework. For companies looking to establish themselves in the country, it’s a negative signal. Why choose France if the regulatory framework looks like a puzzle with half the pieces missing?
And the problem is not just technical. It’s also about the signal sent to the market. A vague tax framework implicitly says: “we haven’t yet decided if we really want you here.” Not the best selling point to attract international talent or investment funds.
Cybersecurity: Resources Are Lacking
On the cybersecurity front, Midy is just as direct. The resources dedicated to protection against cyberattacks are insufficient. The attention paid to this issue is also lacking. Cryptocurrency holders in France are therefore exposed to security risks that, in other countries, are better covered.
This is an angle less often heard in the French public debate on crypto. There’s a lot of talk about taxation, regulation, MiCA. But whether users are concretely protected against digital attacks often falls by the wayside. Midy is putting it back on the table.
And it’s legitimate. The cryptocurrency sector is a prime target for hackers. The amounts at stake are enormous, transactions are irreversible, and tracing stolen funds remains complex despite advances in on-chain analysis tools. Without a serious national cybersecurity strategy, France exposes its users to losses that could easily amount to millions.
It’s not yet clear what specific measures Midy envisions on this point. He calls for more resources to be mobilized, for greater attention to the issue. But the details of an action plan remain vague for now.
Is France Lagging on the International Scene?
Behind the technical criticism lies a broader concern. Midy believes that France risks being outpaced by countries that have addressed the issue earlier and more seriously. The idea is not new in the French crypto debate, but it takes on particular significance coming from a deputy who has looked into the matter.
Other jurisdictions have clarified their tax framework on digital assets, invested in dedicated cybersecurity infrastructures, and created conditions that attract companies in the sector. France has assets—a pool of developers, an active DeFi scene, investment funds interested in Web3. But assets are not enough if the regulatory framework remains a hindrance.
Midy wants a thorough reform. Tax simplification, coordination among regulatory entities, a national cybersecurity strategy. The goal: to make France competitive, attract investments, and secure those who already trust digital assets.
And he insists on the urgency. Every month without reform likely means companies choosing to set up in Lisbon, Dubai, or Singapore instead of Paris. The market doesn’t wait.
The ball is in the legislators’ court.
Frequently Asked Questions
What does Paul Midy criticize about the French tax framework on cryptocurrencies?
He considers the tax rules confusing, discouraging, and poorly coordinated among different regulatory entities, which hinders investment and innovation in the sector.
Why does Midy talk about cybersecurity in the crypto context?
He believes that the resources and attention devoted to protection against cyberattacks are insufficient in France, exposing cryptocurrency holders to increased security risks.
