French Finance Law 2025: Introduction of a new reporting obligation for providers of cryptoasset services (DAC8)

I. Who is affected by the DAC8 obligation?

A. Which service providers are affected by this obligation?

The new reporting obligations target “service providers” who provide “a service on cryptoassets” for all transactions carried out by users of cryptoassets through them.

Pursuant to article 1649 AC ter of the FTC, providers of cryptoasset services who meet one of the following conditions are required to subscribe to this statement:

• Approved by the French authorities or, in the case of credit institutions, having complied with a notification procedure;
• Tax residence in France;
• Incorporated in accordance with French law and, having legal personality in France or required to file a declaration relating to its income with the French tax authorities;
• Managed from France or having their usual seat of business in France.

When the service provider is established in different States including France, it can fulfill its reporting obligation with respect to France by carrying out the equivalent reporting formalities with the administration of another partner State himself or, where appropriate, through the branch, the equivalent reporting formalities with the administration of another partner State.

On the other hand, an operator residing in a State or territory that has concluded an automatic data exchange agreement with France may be exempt from this declaration for transactions already covered by that agreement.

B. What transactions are involved?

The new provisions of article 1649 AC bis of the FTC target the following transactions:

• Exchanges between different types of cryptoassets or between cryptoassets and money issued by a central bank;
• Transfers of cryptoassets from or to an account or address belonging to the user.

II. What does the service provider have to declare?

Article 1649 AC bis of the FTC gives the list of elements that the service provider must transmit to the tax authorities:

• Identification elements of the service provider;
• Identifying elements of each user who has carried out transactions entering the field;
• Items relating to transactions carried out during the calendar year by each user.

III. Which users are affected?

This statement made by the service providers must mention, in accordance with article 1649 AC quater of the FTC, the users:

• Residents of France or a partner state or passive non-financial entities controlled by a natural person resident in France or a partner state;
• Who have completed at least one of the transactions falling within the scope of the reporting obligation.

On the other hand, certain categories of users are not targeted:

• Listed entities and related entities
• Public entities
• International organizations
• Central bank
• Financial institution other than an investment entity

IV. What are the new obligations?

Several obligations are imposed on service providers who must, pursuant to article 1649 AC quinquies of the FTC:

• Implement the necessary due diligence to identify the users of cryptoassets concerned;
• Verify the reliability of the information collected and store it;
• Inform users that their French data may be communicated to the tax authorities of another partner state;
• Communicate to the users concerned the information sent to the tax authorities before filing the declaration.

Finally, providers of cryptoasset services must, after 2 reminders and the expiration of a period of 60 days, prevent the user who does not comply with his obligation to transmit his information, from carrying out the transactions that fall within the field.

V. Registration of service providers

In accordance with article 1649 AC sexies of the FTC, service providers subject to the reporting obligation must register with the tax authorities to obtain a unique registration number.

VI. What are the penalties for non-compliance?

Article 1736 of the FTC is amended to provide for fines in the event of non-compliance with reporting obligations:

• For lack of transmission, inaccuracies or omissions: fine of 15 euros per transaction not declared, declared late or inaccurate, up to a limit of €2,000,000 per service provider and per year;
• For breach of due diligence obligations: tax fine of up to €50,000.

VII. When will the “DAC8” reporting requirement apply?

The provisions relating to cryptoasset services come into force on 1 January 2026 and apply to transactions made on or after that date, which must be declared in 2027.

VIII. How long does it take to fulfill its obligation?

The finance law for 2025 does not contain information on the specific deadlines for the reporting obligation of service providers on cryptoassets. It is necessary to wait for the publication of the decree that will set out the conditions under which the declaration will be made.

IX. How to set up this system in a company?

1. Regulatory analysis and understanding: what are the types of cryptoassets concerned, the information to be collected and the reporting obligations;
2. Data collection: retrieve the necessary information on customers and cryptoasset transactions and store them;
3. Information verification: implement procedures to verify the accuracy of the information collected, ensure that it is complete and maintain a record of the steps taken by the service provider;
4. Declaration to the tax authorities: establish a process for submitting the required information to the appropriate tax authorities, in accordance with the prescribed deadlines and formats.

By following these steps, you secure your compliance with DAC 8 rules and reduce the risk of sanctions.

Our teams offer comprehensive support to prepare you for the reporting obligations imposed by the DAC 8 directive. In particular, our team is responsible for identifying the scope of application, setting up the procedures for collecting and verifying data that will make it possible to formalize the declaration to the tax authorities. Cyplom has already supported several major operators for similar reporting obligations under DAC 7 (see our offer).

Thanks to our expertise, you benefit from personalized follow-up to address these new obligations with confidence as providers of services on cryptoassets. ‍

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