What determines if you have to pay taxes on your crypto investment gains is the tax policy of the country you pay taxes in.
All European countries are on the wagon to regulate crypto transactions and France, where Deblock is first launching its product, is no different.
How does France tax cryptocurrencies?
The General Directorate of Public Finances in France, also known as Direction Générale des Finances Publiques (DGFiP) have outlined tax rules surrounding crypto assets and they fall under the Income Tax Regime.
As the crypto landscape continues to change, regulations surrounding it will be adapted too. It's possible that the contents of this page may no longer be accurate depending on when you consult them. Please talk to an accountant or consult France's official tax authority website to ensure that you access to the correct tax policies in effect.
Do I owe taxes on crypto assets?
In France, crypto assets are considered a moveable asset and the General Directorate of Public Finances (DGFiP) treats them generally like stocks, bonds, and other capital assets.
DGFip goes on to say that crypto assets do not have the legal status of a currency, but it is accepted as a medium of exchange.
Like any moveable asset, if you earn money or make a capital gain from disposing of crypto, it is taxed as an ordinary income, depending on how you got your crypto assets and how you used them.
In France, you will create a taxable event only when you convert your crypto to fiat and when you receive crypto profits from activities like mining.
You will not owe taxes when you buy crypto, trade, swap or exchange crypto among wallets.
Does DGFiP know that I have crypto?
It is very likely that DGFiP knows that you have crypto is it is held with a digital currency exchange established in the European Union.
Additionally, companies that provide financial services are regulated under the Anti-Money Laundering Directive of the European Union. This makes it necessary for crypto asset related organisations to report how they identify customers.
EU member countries share this data to monitor and rule out illegal financial activities.
For more information on crypto taxation and how much you have or don't have to pay in taxes please visit the French Tax Authority website.
How do I declare?
To declare your crypto transactions, use the transaction history file from the Deblock app. Each crypto-to-EUR conversion must be reported individually. For a simpler process, you can use tax tools that automatically generate your crypto tax report from your transaction data.
You can download your crypto transaction history directly from the Deblock app:
Open the Deblock App
Open your profile (tap your photo in the top-left corner)
Select "Crypto"
Scroll to and tap "Export Transaction History"
Tap "Send transaction history" to receive your CSV file by email