France’s Council of State has declined to suspend, on an emergency basis, a decree that applies the European Union’s DAC8 crypto tax-transparency rules in France. The request had been brought by Bull Bitcoin and Paymium, which argued that the system’s centralized collection of user data creates immediate risks for the safety and physical security of crypto users.

The court did not rule on the broader legality of the measure. Instead, it said the applicants had not demonstrated sufficient urgency to justify an emergency stay, leaving the decree in force while a separate challenge to annul it continues.

Emergency request denied

The emergency petition asked the Council of State to immediately halt the French decree implementing DAC8. Bull Bitcoin and Paymium argued that forcing crypto asset service providers to collect and centralize sensitive customer information exposed users to a near-term danger, particularly if those records were compromised or exploited.

The court rejected that request, finding that the threshold for urgency had not been met. As a result, the decree remains applicable for now, even though the underlying dispute over whether it is lawful has not yet been decided.

What DAC8 requires

DAC8 is the EU framework for tax transparency covering crypto assets, and France has transposed those rules into national law. Under the regime, crypto asset service providers must gather personal and financial information from users so that the data can be automatically exchanged among tax authorities across the European Union.

The companies challenging the decree say that this concentration of records creates practical dangers beyond tax compliance. In their view, large pools of identity and financial data could become attractive targets for cyberattacks or criminal misuse if breached.

Arguments in the broader legal challenge

Although the emergency bid failed, the main case remains active. In that separate annulment action, the challengers argue that the decree goes beyond the government’s authority and conflicts with protections under the French Constitution as well as European privacy standards.

They have also pointed to earlier warnings from French tax authorities about cyberattacks and fraud tied to large centralized databases. Those warnings were cited to support the claim that the decree’s data architecture creates concrete risks, even if the court was not persuaded that an immediate suspension was warranted.

Timeline and next step

The DAC8 framework took effect across the European Union on January 1, 2026. The first reporting cycle covering 2026 is scheduled to be due by September 30, 2027.

For now, the confirmed next step is the continuation of the annulment proceedings, which will address the substance of the legal objections left open by the emergency ruling. Until that case is decided, the French decree implementing DAC8 remains in place.

Source: news.bitcoin.com