France has started mass audits of digital asset investors.

France has started mass audits of digital asset investors. The tax authorities can already see your transactions.

Even if you never transferred funds to a French bank account.
Even if the platform is not registered in France.
Even if you used a foreign VASP or a non-custodial wallet.

In France, digital asset investors remain one of the priority targets for DGFiP in 2025–2026.

How the tax authorities obtain transaction data:

• automatic information exchange through PSAN, CRS, CARF, and DAC8
• blockchain analytics and data mining
• monitoring of social media, spending habits, and lifestyle indicators

If your official income is around €30–40k, but your social media shows a Tesla, real estate purchases, or luxury travel, the risk of an audit increases significantly.

What investors should know:

• selling digital assets for fiat currency must be declared
• PFU tax is approximately 30% plus social contributions
• foreign platforms must be reported through Form 3916-bis
• penalties start from €1,500 for each undeclared account
• digital asset-to-digital asset swaps are generally not taxed until conversion into fiat, but they still must be documented

Another major risk today is AML compliance and proof of source of funds.

Banks, EMIs, and VASPs are applying increasingly strict checks on source of funds and source of wealth. Explanations such as “old cash savings” or “assets purchased years ago” without supporting documents are now much more likely to trigger account freezes and enhanced due diligence (EDD) reviews.