France’s Council of State Rejects Emergency Bid to Halt Crypto Tax Rules

The firms sought to halt the directive, which mandates that service providers collect and centralize sensitive user data for tax reporting. Bull Bitcoin argued that creating such databases poses a severe security threat, suggesting that compromised records could expose cryptocurrency holders to kidnapping, extortion, and physical violence. The court dismissed these concerns as speculative in the context of an emergency injunction, stating that a low-probability risk does not meet the threshold for immediate suspension.

While the emergency ruling focuses solely on the timing of the implementation, the companies’ primary legal battle continues. Bull Bitcoin maintains that the decree itself is fundamentally flawed, citing concerns over mass surveillance and potential violations of European privacy protections. This struggle occurs against a backdrop of increasing physical violence against crypto investors in France. According to data from Interior Minister Laurent Nuñez, the country recorded 77 crypto-linked criminal cases by July 2026, a significant increase from 45 incidents in 2025. Blockchain security firm CertiK identified France as the site of 33 out of 52 global physical attacks during the first half of 2026, noting that leaked personal information may be a contributing factor to the trend. Despite the setback in court, Bull Bitcoin intends to pursue its challenge to annul the decree entirely, arguing that the government’s approach to data collection remains a dangerous overreach.