The application of the new European tax rules on cryptocurrencies is already causing disputes in France. The non-custodial exchange platform Bull Bitcoin has initiated proceedings before the
The application of the new European tax rules on cryptocurrencies is already causing disputes in France. The non-custodial exchange platform Bull Bitcoin has initiated proceedings before the Council of State to request the annulment of the French decree implementing the DAC8 directive. The company believes that this reporting system could expose users to surveillance and security risks. According to it, the consequences would far exceed the tax framework and could affect nearly 135 million Bitcoin holders in Europe.
Bull Bitcoin announced that it seized the Council of State to annul the French decree implementing the new reporting obligations for crypto assets, resulting from the transposition of the European DAC8 directive. The platform stated in a press release that it filed an urgent application on February 24 before submitting a detailed legal brief with its arguments. It specifies the intention to use all available resources to suspend, delay, modify, or annul the effects of this regulation, which transforms the “Know Your Customer” into “Kill Your Customer” according to the company.
We cannot let the very foundations of civilization be shattered by this attack on privacy rights. We must draw a line in the sand and refuse to cede any more territory before we have nothing left. Someone must take a stand. It appears that no one else is willing and able to do so. Therefore, it falls to Bull Bitcoin to lead this fight.
Francis Pouliot, CEO of Bull Bitcoin. Source: The company’s press release.
Bull Bitcoin considers that the new obligations imposed on digital asset service providers go far beyond fiscal needs. It believes that the systematic collection of identity data and transaction information could lead to the creation of a vast database linking legal identities to addresses used for transactions. It believes this centralization represents a significant risk for holders of Bitcoin and other cryptocurrencies.
The platform also highlights that this risk arises in a context marked by large-scale data breaches in the sector. It notably recalls that in May 2025, Coinbase had reported a cyberattack affecting less than 1% of its monthly active users, with a potential cost of up to 400 million dollars in reimbursements.
Your 1st cryptos with CoinbaseThis link uses an affiliate program.Effective January 1, 2026, DAC8 requires providers of cryptocurrency services to collect users’ identity information as well as their transaction data. The companies concerned must then automatically transmit this information to national tax authorities, who will share it with their counterparts in other European Union member states.
France incorporated DAC8 into its national law through Decree No. 2025-1276, signed on December 19, 2025. The first reports covering the 2026 calendar year must be submitted before September 30, 2027. After this deadline, European tax administrations will begin automatically exchanging the collected information.
Bull Bitcoin also criticizes the coordination between DAC8 and the Crypto-Asset Reporting Framework (CARF), developed by the Organization for Economic Co-operation and Development. According to the platform, these two systems progressively strengthen international exchanges of data related to cryptocurrency transactions. It believes this evolution increases risks in case of leaks of sensitive information.
To justify its appeal, Bull Bitcoin also highlights the physical risks users could face if these databases were compromised. The platform states that a data leak could make it easier to identify Bitcoin holders, as well as their relatives.
These concerns arise as France ranks among the countries most affected by kidnappings targeting crypto-asset holders. In April, RTL reported that French police recorded 41 kidnappings related to cryptocurrencies since the beginning of 2026. At the same time, cybersecurity firm CertiK indicated that wrench attacks increased by 75% in 2025, with 72 verified cases worldwide. France alone accounted for 19 confirmed attacks, while Europe represented about 40% of recorded incidents.
Bull Bitcoin considers that DAC8 could exacerbate these risks if the collected information were disclosed during a cyberattack. The platform states that this data centralization goes beyond fiscal objectives and could have direct consequences for holders of Bitcoin and other digital assets.
The procedure initiated before the Council of State could now become a first legal test for the application of DAC8 in France. Its outcome will be closely watched by industry players, as the first reporting obligations approach and the debate on the balance between tax control and crypto user protection continues to intensify.
