French Court Rejects Emergency Bid to Halt EU Crypto Data Rules
The French Court of State has rejected an emergency bid by cryptocurrency companies Bull Bitcoin and Paymium to halt the enforcement of EU's DAC8 crypto tax-transparency rules. The ruling dismisses a summary suspension proceeding brought by the two companies, which argued that centralizing digital asset user data poses an immediate threat to user safety and physical security.
The decree implementing the European Union's Eighth Directive on Administrative Cooperation (DAC8) requires cryptocurrency service providers to gather sensitive personal and financial data for automatic exchange among EU member states' tax authorities. Bull Bitcoin and Paymium claimed that creating a centralized repository of detailed digital asset records creates an imminent danger of data breaches, which could be exploited by violent criminals to locate, extort, or kidnap cryptocurrency holders and their families.
The companies pointed out that France accounts for a disproportionate share of home invasions and robberies targeting crypto entrepreneurs. In August, the country's tax agency admitted that a hacker had stolen data from 678,438 taxpayers. The breach prompted industry participants to call for a moratorium on state institutions collecting personal data.
The French court denied the request for emergency intervention, ruling that the applicants failed to demonstrate a sufficient situation of urgency. However, the decision does not constitute a loss on the merits of the case, according to Francis Pouliot, founder of Bull Bitcoin.