France's new crypto tax-reporting rules just drew their first court challenge

Bitcoin exchange @BULLBITCOIN_ has launched a legal challenge against France's implementation of DAC8, the European Union's crypto tax-reporting directive, petitioning the Conseil d'État, France's highest administrative court, to annul the French decree implementing the EU's DAC8 (Directive (EU) 2023/2226).

DAC8 has applied since January 1, 2026, requiring qualifying crypto service providers to collect customer identity and transaction details and report them to French tax authorities, who then automatically share the information with counterparts across EU member states. Under the directive, crypto service providers must submit their first reports covering the 2026 calendar year by September 30, 2027, after which tax authorities in EU member states will automatically exchange the information.

Bull Bitcoin filed its initial petition before the Conseil d'État on February 24, 2026, followed by a substantive legal brief detailing its constitutional and administrative arguments against the decree. The exchange is described as the world's oldest Bitcoin-only and non-custodial exchange, making it one of the first regulated crypto firms to seek judicial intervention against the new tax transparency rules.

A Honeypot for Criminals

Bull Bitcoin argues that DAC8 risks creating a "mass database" linking legal identity and home addresses, including transactions with no relevance to taxation. CEO Francis Pouliot (@francispouliot_) has been direct in his criticism. Pouliot said: "DAC8 has transformed the concept of Know Your Customer into Kill Your Customer."

The exchange's concerns are grounded in a worsening security environment in France. French Interior Minister Laurent Nuñez confirmed the country has recorded 77 cases of kidnapping, unlawful detention, extortion, or attempted crimes linked to the crypto industry in the first half of 2026, up from 45 in all of 2025. Wrench attacks increased by 75% in 2025 to 72 verified cases worldwide, according to cybersecurity firm CertiK, with France recording the most incidents during 2025 at 19 confirmed cases, while Europe accounted for roughly 40% of global incidents.

The link between data exposure and physical attacks is not theoretical. In 2025, a French tax official was charged for using government tax software to look up the addresses and assets of cryptocurrency investors and selling the information to organized crime networks. Bull Bitcoin argues that DAC8 could effectively connect legal identity and home addresses with crypto transaction histories, including transfers that may have no direct relevance to tax obligations.

Broader Stakes for Europe

Bull Bitcoin says the legal challenge represents only the beginning of a broader campaign against both DAC8 and the OECD's Crypto-Asset Reporting Framework (CARF), which many jurisdictions are expected to adopt. Alongside the lawsuit, the exchange has also launched dac8.com, a public information portal outlining its objections to the regulation.

Supporters of DAC8 argue the directive is a proportionate response to tax evasion. According to the European Commission, tax authorities faced significant challenges tracking transactions due to the pseudo-anonymous nature of blockchain technology, and the OECD estimated over €10 billion in annual tax revenue losses from unreported crypto transactions in the EU. The case could become one of the first significant judicial tests of DAC8 within the European Union.

Sources:
Crypto Times: Bull Bitcoin Challenges EU DAC8 Crypto Reporting Rules in Court
CoinTelegraph: Bull Bitcoin Challenges France's DAC8 Implementing Decree
Crypto Briefing: France Reports 77 Crypto-Linked Kidnapping Cases in H1 2026