French Court Backs EU Crypto Tax Data Collection Despite Security Concerns

France's highest administrative court has dismissed an emergency injunction request by cryptocurrency firms Bull Bitcoin and Paymium against the implementation of the EU's Virtual Assets Tax Information Exchange Directive (DAC8). The court ruled that concerns over potential hacking or physical crime risks from a centralized tax database do not meet the threshold for urgent suspension, stating that 'mere possibility or very low probability risks alone cannot satisfy urgent injunction requirements.' While the main lawsuit challenging DAC8's constitutionality and legality continues at the highest administrative court, the firms had argued that storing virtual asset ownership and transaction details on central tax servers could make users targets for crimes like robbery, kidnapping, and extortion in case of data breaches.