French Court Rejects Emergency Halt to EU Crypto Data Rules

France's Council of State rejected an emergency motion to suspend the decree enforcing EU DAC8 crypto tax rules. The ruling dismisses claims that centralized data collection poses an immediate threat to user safety. The court stated that the applicants failed to demonstrate a situation of urgency. A separate lawsuit seeking the complete annulment of the regulation remains active. The decision allows the data reporting framework to proceed while the full legal challenge continues.

Bull Bitcoin and Paymium filed the petition in August 2026. They requested an interim suspension of French Decree No. 2025-1276. This decree transposes DAC8 into national law. It requires crypto asset service providers to gather sensitive personal and financial data. The data is intended for automatic exchange among EU member states' tax authorities. The companies argued that a centralized repository creates an imminent danger of data breaches. They warned that leaked databases could be exploited by violent criminals to locate and extort holders. France has seen a disproportionate number of home invasions targeting crypto entrepreneurs.

Court Cites Lack of Urgency

The tribunal determined that storing transaction data does not automatically heighten the probability of compromise. The court noted that the mere possibility of a risk with very low probability cannot constitute urgency. This procedural ruling does not address the underlying legality of the decree. Francis Pouliot, founder of Bull Bitcoin, stated the decision is not a loss on the merits. He emphasized that the annulment lawsuit remains ongoing. The court's focus was strictly on the grounds for an immediate stay.

Critics point to a recent breach involving 678,438 taxpayers as evidence of risk. France's tax agency admitted a hacker stole this data in August. Industry participants called for a moratorium on state data collection following the incident. The plaintiffs referenced prior statements from French tax officials. These officials acknowledged that centralizing identity and asset values creates high-value targets for cyberattacks. The substantive challenge claims the decree exceeds government authority and violates fundamental rights.

Substantive Legal Challenge Continues

The ongoing lawsuit asserts that the decree violates French constitutional law and European privacy standards. Bull Bitcoin argues the regulation infringes on fundamental rights by mandating broad data sharing. The company contends that the centralized nature of the system amplifies security risks. The initial reporting deadline for 2026 data is set for September 30, 2027. This timeline provides a window for the full legal proceedings to conclude. The outcome of the annulment case will determine the final status of the data exchange requirements.

GN auto markets/crypto: crypto regulation reports that the legal battle remains a focal point for the industry. The rejection of the emergency bid maintains the current regulatory trajectory. Market participants continue to monitor the proceedings for potential impacts on compliance. The centralization of financial data remains a contentious issue for privacy advocates. The court's decision underscores the difficulty of halting administrative measures without proving immediate, tangible harm.