30%
Default flat rate on crypto capital gains for French residents: 12.8% income tax + 17.2% social charges under CGI Art. 150 VH bis. Progressive scale available by annual irrevocable option since 2023.
€305
Annual disposal threshold below which crypto gains are exempt. Applies to total disposals for the year excluding tax-deferred crypto-for-crypto exchanges. Above this amount, the full gain is taxable.
0%
Tax on crypto-to-crypto exchanges where no cash consideration is received. These like-kind exchanges benefit from a sursis d'imposition (automatic tax deferral) — no taxable event at the time of the exchange.

What Cryptocurrencies Are

Cryptocurrencies — also called virtual currencies or monnaies virtuelles — are digital currencies created and exchanged electronically over the internet. They present themselves as an alternative to regulated legal currencies: they are not governed by central banks and carry no legal tender status. Bitcoin, created in 2009, is the most widely used, but many others exist — including ether, ripple, and litecoin.

Under the French regulatory framework, C. mon. fin. Art. L 54-10-1 defines cryptocurrencies as any digital representation of value that is not issued or guaranteed by a central bank or public authority; that is not necessarily linked to a currency with legal tender status; that does not have the legal status of a currency; but that is accepted by natural or legal persons as a means of exchange, and that can be transferred, stored, or exchanged electronically. The statutory term used in French law is actif numérique (digital asset), which encompasses both cryptocurrencies and tokens issued in initial coin offerings (ICOs).

Mining and blockchain

Cryptocurrencies are created through minage (mining), which relies on an encrypted, decentralised transaction protocol running on the blockchain. The blockchain is a secure technology for storing and transmitting information structured as a database. Because it depends on no central authority, transactions do not require a trusted third party — they are validated by the network itself through cryptographic consensus.

Holding: self-custody vs custodial storage

Cryptocurrencies are received and held via a public key and a private key. The public key is the address visible to others — it is used to receive crypto. The private key is a unique alphanumeric code that gives access to and control over the holdings. Losing the private key permanently destroys access to the corresponding crypto assets — there is no recovery mechanism. An investor can choose between self-custody (storing their own private keys) or delegating custody to a professional PSAN (see below).

Legal Status in France

French law does not grant cryptocurrencies any of the recognised financial or monetary statuses:

✗ Not legal tender
Merchants may legally refuse crypto in payment (C. pén. Art. R 642-3). Crypto issuance does not infringe on central banks' currency monopoly.
✗ Not electronic money
Crypto does not meet the definition in C. mon. fin. Art. L 315-1 because it is not issued against the remittance of funds for payment purposes.
✗ Not a financial instrument
Cryptocurrencies themselves are not securities, bonds, or units in collective investment schemes. They fall into a sui generis category of digital asset.

This absence of legal status means there is no deposit guarantee scheme, no investor compensation fund, and no lender of last resort for cryptocurrency holdings. Crypto is legal to hold and trade in France — but holders bear all risks without the protections that regulated financial products carry.

Derivatives on crypto: a different legal status

While cryptocurrencies themselves are not financial instruments, derivatives on cryptocurrencies are a different matter. CFDs, options, and rolling spot forex contracts whose underlying asset is a cryptocurrency and which settle in cash are classified as financial contracts by the AMF (AMF analysis of 22 February 2018). Platforms offering crypto derivatives to French investors must therefore hold the status of prestataire de services d'investissement (PSI) and comply with all PSI obligations — including authorisation requirements and conduct rules. They are also subject to the prohibition on electronic advertising of highly speculative financial contracts to the general public.

Risks: What the Banque de France and AMF Say

The Banque de France and the AMF regularly warn that cryptocurrency investment is suited only to sophisticated investors with the technical and financial literacy to understand the complex protocols involved. Three categories of risk are consistently highlighted:

  • Highly speculative: Crypto prices are subject to extreme short-term swings, driven entirely by user confidence. In the event of a market collapse, no central body guarantees conversion into euros. Capital loss risk is very high and there is no capital protection.
  • No deposit guarantee or custody security standards: Holders have no legal protection against theft by hackers or against losses caused by a storage platform ceasing activity. Electronic wallets and custodians are not subject to the deposit guarantee rules that protect bank account holders.
  • Anonymity creates criminal risk: The anonymous nature of crypto transfers makes them a tool for illegal online sales, money laundering, tax fraud, and terrorist financing.

The PSAN Regulatory Framework

Prestataires de services sur actifs numériques (PSANs) are regulated financial intermediaries offering services relating to digital asset investment. The regulated services include: buying and selling digital assets against legal tender; custody of digital assets on behalf of clients (including access via private keys); exchange of digital assets for other digital assets; operation of a digital asset trading platform; reception and transmission of digital asset orders; and portfolio management of digital assets on behalf of third parties (C. mon. fin. Art. L 54-10-2).

Mandatory AMF registration

Before providing any of the first four services in France, a PSAN must register with the AMF (C. mon. fin. Art. L 54-10-3). Registration allows the AMF to verify that the platform's managers and controlling persons meet integrity, professional competence, and sound management standards, and that the platform complies with anti-money laundering and counter-terrorism financing rules. The AMF publishes a whitelist of registered PSANs and a regularly updated blacklist of platforms offering the regulated services in France without registration. Failure to register is a criminal offence.

Optional AMF approval

French-established PSANs may also, on a voluntary basis, seek AMF approval (C. mon. fin. Art. L 54-10-5). Approval is a higher standard that distinguishes platforms offering enhanced investor guarantees. Only approved PSANs may engage in active canvassing and advertising directed at investors.

Before Investing: Check the Lists

Any French investor considering using a crypto platform should verify its status on the AMF's PSAN register before committing funds. Registration confirms anti-money-laundering compliance and management integrity checks — it does not guarantee investment quality or capital protection. Unregistered platforms operating in France are illegal: using one provides no legal recourse in the event of loss or fraud. The AMF's PSAN whitelist and blacklist are publicly accessible on amf-france.org.

Income Tax on Cryptocurrency Gains

The taxable event: disposals against legal tender

Capital gains realised by French tax residents on the onerous disposal of digital assets are subject to income tax under CGI Art. 150 VH bis. A disposal includes any sale for euros or other legal tender currencies, any exchange of crypto for goods or services, and any other transfer for value. Two important relieving rules apply: crypto-to-crypto exchanges where no cash consideration is received benefit from an automatic sursis d'imposition — no taxable event arises at the moment of the exchange. Taxpayers are fully exempt where total disposal proceeds for the year — excluding tax-deferred exchanges — do not exceed €305.

Tax rates

The default rate is the PFU flat rate of 12.8% income tax plus 17.2% social charges = 30% combined. From disposals made from 1 January 2023 onwards, taxpayers may opt — by an express and irrevocable election on their annual income tax return — to have their crypto capital gains taxed at the progressive income tax scale (CGI Art. 200 C, al. 2). This option is global: it applies to all digital asset disposal gains realised by the entire tax household in the relevant year and must be elected each year. The progressive scale will be advantageous for taxpayers in low marginal brackets; for those in the 41% or 45% bracket it is not.

The professional regime: BNC since 2023

Where a taxpayer's buying, selling, and exchanging of digital assets is carried out in conditions comparable to those characterising professional activity of that kind, the gains are classified as bénéfices non commerciaux (BNC) since 2023 (CGI Art. 92, 2-1° bis). BNC classification means the progressive income tax scale applies without the option mechanism, and social contributions for the self-employed apply rather than social charges at 17.2%.

Calculating the Capital Gain: The Portfolio Formula

The capital gain on a disposal of digital assets is not simply the difference between the sale price and the original cost of the specific units sold. French tax law uses a portfolio-wide formula that takes into account the total acquisition cost of all digital assets held, and the proportion of the portfolio being disposed of (CGI Art. 150 VH bis).

Gain = Disposal price
− (Total portfolio acquisition cost × Disposal price ÷ Total portfolio value at time of disposal)
Disposal price: actual proceeds received net of disposal costs, or value of goods/services received
Total portfolio acquisition cost: sum of all amounts paid in legal tender for all digital assets ever acquired (excluding tax-deferred exchanges), reduced after each prior disposal
Total portfolio value at disposal: aggregate market value of all digital assets held at the moment of disposal

Three technical adjustments apply to the acquisition cost base: (1) after each disposal, the total acquisition cost is reduced by the fraction allocated to that disposal; (2) assets acquired before 2019 should be excluded from the base for the first post-2019 disposal; (3) for assets acquired by gift or inheritance, the acquisition cost is the value used for inheritance or gift duties, or the actual market value at the time they entered the taxpayer's patrimony.

Portfolio Formula: Worked Example

A taxpayer buys 3 bitcoins in January N for €15,000 total. In April N, they exchange 1 bitcoin for 50 ethers — this is a tax-deferred crypto-for-crypto exchange (no taxable event). In March N+1, they sell their 2 remaining bitcoins for €9,000, retaining the 50 ethers which are then worth €8,000.

Total portfolio value at disposal: €9,000 (sale proceeds) + €8,000 (ether value) = €17,000
Total portfolio acquisition cost: €15,000 (the original purchase; the exchange of 1 BTC for ETH was tax-deferred)

Gain = €9,000 − (€15,000 × €9,000 / €17,000)
= €9,000 − €7,941 = €1,059

For future disposals: The acquisition cost base is reduced by €7,941. Remaining base to carry forward: €15,000 − €7,941 = €7,059.

This example shows why the formula matters: even though the taxpayer retained half the portfolio (the ethers), the calculation correctly apportions the total original investment cost across the entire portfolio — not just the specific units sold.

Loss offset and annual carry-forward

Losses realised on digital asset disposals in a given tax year may be offset only against gains of the same nature — other digital asset disposal gains — realised in the same year. There is no carry-forward to future years and no offset against other categories of capital gains.

Declaration Obligations

Annual return: Form 2086

Taxpayers must include the total net gain or loss from all taxable digital asset disposals in their annual income tax return. They must attach Form 2086 (annexe n° 2086) detailing each individual taxable and exempt disposal. The income tax corresponding to the gain is paid by the individual taxpayer — or by any intermediary acting on their behalf — directly to the tax authorities.

Reporting foreign crypto accounts: Form 3916-3916-BIS

French tax residents are required to declare the details of any digital asset accounts opened, held, used, or closed with entities established abroad (CGI Art. 1649 bis C and 1736, X). The declaration is made using Form 3916-3916-BIS. A person is deemed to hold an account if they are the account holder, co-holder, economic beneficiary, or beneficial owner. A person is deemed to have used an account if they carried out at least one credit or debit operation during the year.

Penalties for Non-Declaration of Foreign Crypto Accounts

Failure to declare a foreign crypto account is sanctioned by a fine of €750 per undeclared account (or €125 per omission or inaccuracy), subject to an overall cap of €10,000 per declaration. Where the value of the undeclared accounts exceeded €50,000 at any point during the year, the per-account fine rises to €1,500 and the per-inaccuracy fine to €250. These penalties are in addition to any income tax reassessment on undeclared gains.

Inheritance, Gift Tax, and VAT

Inheritance and gift tax

Virtual currency units are subject to ordinary inheritance tax rules on death, subject to applicable international tax treaties (BOI-ENR-DMTG-10-10-20-10). Inter vivos transfers of crypto assets are subject to gift duties in the ordinary way. The value used for both inheritance and gift duty purposes is the market value of the assets at the date of the transfer. This value also becomes the acquisition cost for the recipient for future capital gains calculations.

VAT

Exchange transactions converting bitcoin into traditional currencies — and by extension other cryptocurrencies — are exempt from VAT, by virtue of the Court of Justice of the European Union's ruling of 22 October 2015 in Hedqvist (CJEU, 22 Oct. 2015, Case C-264/14). The Court held that such transactions constitute the supply of services for consideration, falling within the exemption for transactions relating to currency. This ruling applies across all EU member states including France.

OperationTax treatmentLegal reference
Sale of crypto for legal tenderTaxable disposal: 30% flat rate (or progressive scale by option from 2023). Exempt if total annual disposals ≤ €305CGI Art. 150 VH bis
Crypto-to-crypto exchange (no cash)Tax-deferred (sursis d'imposition) — no taxable event at exchangeCGI Art. 150 VH bis
Use of crypto to buy goods or servicesTaxable disposal at market value of goods/services received, net of costsCGI Art. 150 VH bis
Mining incomeGenerally BNC or BIC on professional basis; mined asset enters portfolio at market value at mining dateCGI Art. 92 and 34
Professional crypto tradingBNC taxation at progressive scale since 2023 (formerly BIC)CGI Art. 92, 2-1° bis
Inheritance / gift of cryptoOrdinary inheritance/gift duties at market value on date of transferBOI-ENR-DMTG-10-10-20-10
Exchange of bitcoin for traditional currency (VAT)Exempt from VATCJEU 22 Oct. 2015, C-264/14
Foreign crypto account declarationMandatory annual declaration (Form 3916-3916-BIS); penalties €750–€1,500/accountCGI Art. 1649 bis C and 1736, X
Key Points: Cryptocurrency in France
Legal status: cryptocurrencies have no legal tender status; merchants may refuse them (C. pén. Art. R 642-3). Not electronic money, not financial instruments. Statutory definition as actifs numériques: digital representations of value not issued by a central bank, accepted as a means of exchange, electronically transferable (C. mon. fin. Art. L 54-10-1). Crypto derivatives (CFDs, options, rolling spot forex) settling in cash ARE financial contracts — platforms must hold PSI status.
Holding: self-custody (store own private key) or delegate to a PSAN. Loss of private key = permanent loss of access. No recovery mechanism. No deposit guarantee; no legal protection against platform failure or hacker theft.
PSAN regime (C. mon. fin. Art. L 54-10-2 s.): mandatory AMF registration for platforms offering 4 core services (fiat-crypto exchange, custody, crypto-for-crypto exchange, trading platform operation). Registration verifies management integrity and AML compliance — not investment quality. Optional AMF approval: higher standard; only approved PSANs may advertise actively. AMF publishes whitelist (registered/approved) and blacklist. Non-registration is a criminal offence. Always check the AMF register before using a platform.
Income tax on disposals (CGI Art. 150 VH bis): 12.8% + 17.2% social charges = 30% flat rate. Progressive scale option available by irrevocable global election on annual return since 2023. Exempt if total annual disposal proceeds (excluding tax-deferred exchanges) ≤ €305. Crypto-to-crypto exchanges: tax-deferred (sursis d'imposition). Professional trading: BNC since 2023 (formerly BIC).
Capital gain formula (CGI Art. 150 VH bis): Gain = Disposal price − (Total portfolio acquisition cost × Disposal price ÷ Total portfolio value at disposal). Portfolio acquisition cost = sum of all legal-tender amounts paid, reduced after each prior disposal by the fraction allocated to that disposal. Gratuitous acquisition: acquisition cost = inheritance/gift duty value, or FMV at entry into patrimony.
Loss offset: losses from digital asset disposals deductible only against same-year same-nature gains. No carry-forward; no offset against other capital gains categories.
Declaration — annual return: total net gain/loss on income tax return + Form 2086 (annexe n° 2086) detailing each individual taxable and exempt disposal individually.
Declaration — foreign accounts: French residents must declare all digital asset accounts held, opened, used, or closed abroad (CGI Art. 1649 bis C): Form 3916-3916-BIS. Penalties: €750/account or €125/inaccuracy (cap €10,000/return); raised to €1,500/account and €250/inaccuracy where account value exceeded €50,000 at any point during the year.
Inheritance and gift tax: crypto subject to ordinary succession and donation duties at market value on transfer date (BOI-ENR-DMTG-10-10-20-10). Market value at transfer = acquisition cost base for the recipient.
VAT: exchange of bitcoin and other crypto for traditional currencies is exempt from VAT under the EU-wide Hedqvist ruling (CJEU, 22 Oct. 2015, Case C-264/14).
Questions About Cryptocurrency and French Tax?

Whether you are structuring a crypto portfolio, assessing the impact of the progressive scale option, declaring foreign exchange accounts, or planning a transfer of digital assets by gift or succession, our guides cover the full French framework for digital assets.

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This article covers the French legal and tax framework for cryptocurrency and digital assets as applicable to individuals managing their private patrimony in France. The BNC professional regime for high-frequency or professional-style crypto trading applies from 2023; the prior BIC regime applied to earlier tax years. The EU MiCA regulation (Markets in Crypto-Assets) introduces additional obligations for crypto asset service providers from 2024–2025 which are outside the scope of this article.