Key points
- Yes, the French tax authorities can obtain information on your Binance activity, and these exchanges are becoming automatic: 2026 transactions will be reported in 2027.
- Any crypto-asset wallet opened, held, used or closed abroad must be declared (Article 1649 bis C of the French Tax Code, CGI).
- Failure to declare is punished by a fine of €750 per undeclared wallet, raised to €1,500 where assets exceed €50,000 (Article 1736, X of the CGI).
- Since 1 January 2026, platforms collect and report their users’ transactions (EU DAC8 framework, Articles 1649 AC bis et seq. of the CGI).
- Since 1 July 2026, providers must hold an EU MiCA authorisation to operate in France.
- The blockchain keeps a permanent record of transactions, which can be used to reconstruct flows during a tax audit.
Yes, the French tax office has access to Binance. The French tax authorities can obtain information on your accounts and your transactions, including from a foreign platform. Since 1 January 2026, this access is becoming automatic: platforms collect data on their users’ transactions, which they will report from 2027. Assuming your transactions stay “under the radar” therefore exposes you to an avoidable tax risk. Here is the current state of the law.
What the French tax office already sees of your Binance account
The tax authorities do not monitor accounts out of mere curiosity. They rely on specific legal tools: reporting obligations that fall on you, the right to request information (droit de communication, Article L. 81 of the French Tax Procedure Code (Livre des procédures fiscales) (in French)), international cooperation and, now, automatic exchange of information. The data sought covers the existence of an account, the identity of its holder, the flows observed and their consistency with your tax returns.
The most frequent trigger for a tax audit remains inconsistency. A large transfer received from a platform into your bank account, with no capital gain declared against it, draws attention. French banks are, moreover, subject to anti-money laundering due diligence obligations, which also apply to funds derived from crypto-assets.
Declaring your Binance account: a separate obligation
As soon as you open, hold, use or close a crypto-asset wallet with a provider established outside France, you must declare it every year, together with your income tax return. This obligation arises from Article 1649 bis C of the French Tax Code (Code général des impôts) (in French), in its version in force on 1 July 2026. It applies even if you made no taxable sale during the year.
This is a separate obligation. It is distinct from the declaration of your capital gains. You can therefore be penalised for an undeclared account even if you made no gain. Each wallet concerned must be declared, including where it was used only occasionally.
What are the penalties for failing to declare?
Article 1736, X of the French Tax Code (in French) sets a fine of €750 per undeclared wallet, or €125 per omission or inaccuracy, up to €10,000 per return. These amounts are raised to €1,500 and €250 where the value of the wallets concerned exceeds €50,000 at any time during the year.
These fines come on top of tax reassessments if taxable gains were not declared. In the event of a deliberate breach, the tax authorities may apply surcharges. The most serious cases may lead to criminal proceedings for tax fraud, which however require stricter criteria than a simple error. A voluntary disclosure, made before any tax audit, usually limits the consequences.
DAC8: automatic exchange of information since 2026
The major change of 2026 comes from the EU framework known as “DAC8” (EU Directive 2023/2226), transposed in France by Article 54 of the 2025 Finance Act into Articles 1649 AC bis et seq. of the French Tax Code (in French). Since 1 January 2026, crypto-asset service providers must collect, verify and report information identifying their users, their accounts and their transactions.
This information will then be sent automatically to the tax authorities of each user’s State of residence. Platforms will file their first report in 2027, covering transactions carried out in 2026. In practice, the French tax office will receive personal data on your Binance transactions without having to ask for it. Decree No. 2025-1276 of 19 December 2025 sets out these due diligence obligations.
MiCA and CASP authorisation: platforms regulated since 1 July 2026
The EU MiCA Regulation (Regulation (EU) 2023/1114) harmonises the supervision of crypto players. In France, Order No. 2024-936 of 15 October 2024 (in French) adapts national law: since 1 July 2026, acting as a crypto-asset service provider (CASP) without authorisation is prohibited, the former PSAN registration having come to an end.
An authorised platform keeps structured information on account opening, client identity and movements. This compliance necessarily strengthens the authorities’ ability to obtain precise and reliable information. The argument that there is no evidence is therefore becoming increasingly weak.
On-chain traceability: evidence that does not disappear
Even when crypto-assets move outside centralised platforms, the blockchain keeps a permanent record of transactions. The tax authorities can use analysis methods to reconstruct chains of transactions and link addresses to an identity, especially at the points of conversion into euros. The blockchain does not automatically “name” a person. It does, however, provide factual material that can be used in a tax audit.
Difficulties arise when on-chain flows do not match the explanations given. The more numerous and complex your movements, the more decisive the supporting documents become: order histories, platform statements, method used to calculate capital gains.
What about the taxation of your Binance gains?
For an individual, capital gains on the sale of crypto-assets fall under Article 150 VH bis of the French Tax Code (in French): a flat income tax rate of 12.8% (Article 200 C of the CGI) and social levies of 18.6%, i.e. 31.4% in total for 2026 income (30% previously), unless you opt for the progressive income tax scale. Sales whose annual total does not exceed €305 are exempt. Exchanges between crypto-assets without a cash adjustment do not trigger taxation. For more detail, see our analysis of the legal ways to avoid the crypto flat tax.
FAQ: the French tax office and Binance
Does Binance pass my data on to the French tax authorities?
Yes, this mechanism is now organised by law. Since 1 January 2026, crypto-asset service providers operating in the European Union must report their users’ transactions (Articles 1649 AC bis et seq. of the CGI). This data will be sent to the tax authorities of the States of residence, for the first time in 2027 for 2026.
I have never converted my crypto into euros: do I still have to declare my account?
Yes. The obligation to declare a wallet held abroad (Article 1649 bis C of the CGI) is independent of any taxable sale. The fine for failure to declare applies even without a capital gain.
What is the risk if I did not declare my Binance account in previous years?
You face the fine per wallet and per year not yet time-barred, plus tax reassessments and surcharges on the omitted gains. A voluntary disclosure, prepared with a tax lawyer, usually makes it possible to present a consistent file and limit penalties. Every situation is different.
Can the French tax office trace a private wallet (cold wallet)?
A self-hosted wallet is not reported by a platform. However, on-chain transactions remain public and permanent. When you convert into euros or transfer to an identified platform, the link with your identity can be reconstructed.
Official sources
- Article 1649 bis C of the French Tax Code, declaration of crypto-asset wallets held abroad: Légifrance (in French)
- Article 1736, X of the French Tax Code, applicable fines: Légifrance (in French)
- Articles 1649 AC bis et seq. of the French Tax Code (transposition of DAC8, Law No. 2025-127 of 14 February 2025, Art. 54): Légifrance (in French)
- Decree No. 2025-1276 of 19 December 2025, reporting obligations of crypto-asset service providers: Légifrance (in French)
- Order No. 2024-936 of 15 October 2024 on crypto-asset markets (MiCA adaptation): Légifrance (in French)
- Article 150 VH bis of the French Tax Code, capital gains regime: Légifrance (in French)
State of the law verified as at 5 October 2026. This content provides general information and does not constitute legal advice. Every situation is different: for a review of your case, our crypto-asset lawyers can assist you.
