Crypto Data Sent to Tax Authorities: Paymium and Bull Bitcoin Rejected
A Rejected Urgent Application in the Name of Tax Interest
This is a setback for French Bitcoin players. The Council of State has just rejected the urgent application filed by Paymium and Bull Bitcoin against decree No. 2025-1276 of December 19, 2025, which transposes the European directive DAC8 into French law.
This text requires crypto-asset service providers (CASPs) established in the European Union to collect, verify, and retain their clients' personal data, and then transmit it annually to the tax administration. This information subsequently feeds into a European register centralizing transactions of all EU residents.
The Judge Dismisses Urgency and Minimizes the Risk of Data Breach
The two platforms presented three main arguments to obtain the suspension of the decree. First, a supposed violation of European Union law. Second, an infringement on the right to privacy and personal data protection. Finally, an increased risk of data breaches related to the centralization of data at the European level.
The judge dismissed these arguments. According to the decision, the infringement on privacy cannot, "in light of the public interest attached to preventing the risk of tax fraud and evasion," characterize an urgency justifying the suspension of the decree. Regarding the risk of data breach, the wording is even more decisive.
The Council of State believes that "the mere possibility of a risk, whose probability of occurrence is very low, cannot constitute an emergency situation."
A Context of Kidnappings Related to Cryptos
The security argument, however, focused on a topic that has become heated in France. According to journalist Grégory Raymond, the national anti-crime prosecutor's office recorded over 70 kidnappings or abductions related to cryptocurrencies in the first eight months of 2026, the vast majority stemming from data breaches.
In Europe, DAC8 has transformed "Know Your Customer" (KYC) into "Kill Your Customer."
Today, Bull Bitcoin officially opens the first legal front against DAC8.
We have approached the Council of State, the highest administrative court in France, to... pic.twitter.com/IbVM81oryQ
--- Bull Bitcoin FR (@BullBitcoinFR) July 9, 2026
Bull Bitcoin emphasized this paradox. A regulation presented as a tool to combat financial crime imposes the creation of massive databases that, if compromised, become a targeting instrument for criminals. Unlike real estate assets, bitcoins can be transferred under duress in a matter of minutes.
-- Price
The Legal Battle Is Not Over
This decision does not close the case. It is only the rejection of an urgent suspension application, a procedure provided for by Article L. 521-1 of the Administrative Justice Code. The substantive appeal filed by Bull Bitcoin in February is ongoing. A definitive decision on the legality of the decree is not expected for another one to two years.
If the Council of State identifies an interpretative difficulty regarding European law, it could also refer a preliminary question to the Court of Justice of the European Union. In the meantime, the decree continues to apply, and French platforms remain obliged to transmit their users' data to the tax authorities since January 1, 2026.
Sources: Grégory Raymond (X), bitcoin.fr
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