France is entering a transformative era for crypto-asset taxation with the adoption of the OECD’s Crypto-Asset Reporting Framework (CARF), transposed into domestic law through the EU’s DAC8 framework and Decree n° 2025169 of 21 February 2025. This framework positions France among early European adopters of automated cross-border crypto reporting, with first reporting obligations set for 2027.
CARF in France: Legal and Market Landscape
CARF was integrated into the French Code général des impôts under Articles 1649 AC bis and 1649 AC quater, requiring crypto-asset service providers (CASPs) to collect and report tax-residency and TIN information for all users, along with transaction data including crypto-to-crypto, crypto-to-fiat, and transfers to external wallets.
The French crypto market is substantial and growing. As of 2025, over 100 CASPs operate under the 2019 PACTE Act, serving an estimated 5–8% of French residents holding digital assets. Annual contributions of €10 000 per provider, plus custody-based fees, create a formalized regulatory environment. By aligning with OECD standards, France ensures transparency for both domestic and cross-border crypto activity, addressing a gap that previously existed under voluntary self-reporting regimes.
Scope and Responsibilities
French CASPs are responsible for onboarding clients, verifying TINs, and collecting self-certifications. They must monitor individual and corporate clients—including controlling persons—for residency changes or ownership updates. Transactions subject to reporting include crypto-to-crypto trades, crypto-to-fiat conversions, and transfers above threshold levels. Legacy obligations remain: residents must declare foreign wallets on Form 3916bis, with penalties up to €1 500 for unreported accounts exceeding €50 000.
CASPs are also expected to maintain detailed ledgers of transactions, including timestamps, wallet addresses, units, and fiat-equivalent values, ensuring data integrity for both domestic reporting to the DGFiP and international exchanges.
Taxation Context in France
French investors’ tax obligations interact closely with CARF reporting. Profits from crypto asset sales are generally subject to the Prélèvement Forfaitaire Unique (PFU) of 30%, while exemptions exist for minor gains or long-term holdings depending on the individual’s situation. Professional traders and businesses face corporate taxation and additional levies, including trade taxes. Accurate CARF reporting ensures authorities can reconcile these obligations and detect undeclared gains efficiently.
Operational Workflow and Compliance Tools
CARF compliance in France requires an end-to-end operational workflow. CASPs begin with KYC procedures, capturing user identification, residency, and TINs. Transactions—including crypto-to-crypto trades, crypto-to-fiat exchanges, and high-value transfers—are monitored continuously, flagged for threshold breaches or changes in client status, and mapped to CARF’s XML schema. Reports are submitted annually to the DGFiP, with records retained for five to seven years for audit purposes.
Advanced compliance platforms such as TaxDo streamline every step of this workflow. TaxDo provides Global Real-Time TIN Lookup (GTL) to validate TINs against official tax authority databases in over 130 jurisdictions and Global TIN Syntax Verification (GSV) to check format, structure, and checksum across 195 jurisdictions. Account-holder self-certifications can be collected and e-signed digitally, ensuring complete and auditable documentation.
Ongoing due diligence is a core component. TaxDo’s Global Identity Intelligence Engine (GIIE) continuously screens accounts against more than 290 international watchlists, including AML, PEP, and sanctions databases, and actively flags changes in client status or risk profile. This ensures CASPs maintain current and accurate information on all clients, including controlling persons and corporate structures.
Finally, the platform generates fully compliant CARF XML reports, integrating both crypto and fiat transactions into a single, audit-ready workflow. By combining TIN validation, syntax verification, e-signature-enabled document collection, ongoing due diligence, GIIE monitoring, and automated reporting, TaxDo ensures that CASPs maintain accuracy, reduce operational risk, and meet France’s CARF obligations efficiently and reliably.
Investor and CASP Preparedness
Investors must consolidate wallets, maintain detailed transaction ledgers, validate TINs, and ensure all accounts are linked to the correct residency status. CASPs should update onboarding systems, implement automated transaction capture, and verify all data aligns with CARF reporting standards. Staff training on CARF, CRS 2.0, and DAC8 integration is essential to unify workflows and reduce operational risk.
Practical measures include performing real-time TIN checks, monitoring for residency or ownership changes, and ensuring that legacy accounts are fully reconciled and documented. Early adoption of these measures positions French CASPs to meet cross-border reporting obligations efficiently.
France in Global Context
France’s CARF implementation mirrors Germany, Switzerland, and the UK in terms of first exchanges set for 2027. Early compliance ensures interoperability with other jurisdictions and positions France as a leading hub for regulated crypto services in Europe. By combining CARF with CRS 2.0, France elevates digital assets to the same transparency standards applied to traditional financial accounts, closing regulatory gaps and promoting investor trust.
Conclusion
The implementation of CARF under French law marks a new chapter in crypto tax transparency. CASPs and investors must prioritize TIN validation, comprehensive transaction reporting, and audit-ready compliance systems. Platforms like TaxDo enable stakeholders to navigate these obligations efficiently, ensuring regulatory alignment, operational resilience, and global trust. By taking proactive steps today, French CASPs can fully embrace CARF and set a benchmark for digital-asset compliance in Europe.