France has developed a comprehensive regulatory and tax framework for crypto-assets, aligning its national policies with evolving European Union standards while retaining distinct domestic fiscal characteristics. **Regulatory Evolution: From DASP to MiCAR Compliance** France’s regulatory approach has progressed from the pioneering 2019 PACTE Law, which established a legal definition for digital assets and a registration regime for Digital Asset Service Providers (DASPs), to full compliance with the EU’s Markets in Crypto-Assets Regulation (MiCAR) by December 2024. This transition moves the industry from a voluntary registration system to a mandatory licensing framework for Crypto-Asset Service Providers (CASPs), imposing stricter capital, governance, and risk management requirements. The Autorité des Marchés Financiers (AMF) oversees market conduct and investor protection, while the Autorité de Contrôle Prudentiel et de Résolution (ACPR) enforces anti-money laundering rules. Existing DASPs registered with the AMF benefit from a transition period until July 1, 2026, but must obtain MiCAR authorization to passport services across the EU. **Taxation: A Categorization-Based System** The French tax authority (DGFiP) applies different tax treatments based on the nature and frequency of a participant’s activities. Taxable events for individuals are generally triggered upon the conversion of crypto-assets into fiat currency or their use to purchase goods/services. * **Occasional Investors:** Subject to a flat 30% tax rate (including 12.8% income tax and 17.2% social contributions) on capital gains. An annual exemption applies for sales under €305. Gains are calculated using a portfolio-based average cost method. * **Professional Investors:** Subject to progressive income tax rates (0%-45%) plus 17.2% social contributions on net annual gains. Losses can offset gains within the same tax year but cannot be carried forward. * **Mining Operations:** Rewards are taxed as non-commercial profits (BNC) at their market value upon receipt, with associated operational costs deductible. Mining is generally not subject to VAT. * **Institutional Investors & Companies:** Corporate income tax applies (standard rate of 25%). Crypto-to-crypto trades may trigger tax liabilities based on mark-to-market accounting principles. Capital losses can be carried forward to offset future profits. **Areas of Ongoing Development: DeFi and NFTs** Tax treatment for Decentralized Finance (DeFi) activities like staking and yield farming remains uncertain, though rewards may potentially be taxed as BNC. The classification of Non-Fungible Tokens (NFTs) is also unclear, leading to significant tax rate disparities—they could be taxed as digital assets (30% flat or progressive rates) or, if classified as art, at a preferential fixed rate of 6.5%. **The Push for Transparency: DAC8 and CARF** France is implementing the EU’s DAC8 directive and the OECD’s Crypto-Asset Reporting Framework (CARF). Starting in 2026, CASPs must begin collecting user transaction data, with the first automatic information exchange between EU tax authorities scheduled for 2027. This will systematically end anonymity for transactions conducted through regulated platforms. **Outlook and Recommendations** France’s framework balances innovation with regulatory oversight and tax compliance. Market participants are advised to maintain meticulous transaction records, utilize professional tax software, and prepare for enhanced reporting obligations. Service providers must accelerate their transition to the MiCAR-compliant CASP regime and strengthen internal compliance systems to meet upcoming transparency requirements.