Taxation and regulation: what companies need to know about crypto

More and more companies are exploring the world of cryptocurrencies, whether to diversify cash reserves, accept digital payments, or invest in innovative solutions 🌍. But a key question arises quickly: what are the tax and regulatory obligations?

Across Europe and in France, the rules are becoming clearer. Companies seeking to integrate crypto must understand tax basics, reporting duties, and upcoming regulations.

The regulatory framework in Europe and France

Since 2024, the MiCA (Markets in Crypto-Assets) regulation has set the European framework. It harmonizes rules across member states: mandatory licensing for providers, stronger investor protection, and transparency for stablecoin issuers.

In France, companies must also consider the PSAN status (Digital Asset Service Provider) delivered by the AMF. Firms offering crypto services like trading or custody must be registered and comply with strict rules (KYC, AML, technical security).

For companies as users — not providers — the main challenge is choosing compliant partners to ensure legal and regulatory security.

Tax obligations for companies

For taxation, cryptocurrencies are considered digital assets. This means:

• Accounting: digital assets must be recorded as assets on the balance sheet, at acquisition cost.
• Capital gains: profits from selling cryptos are taxed as financial income.
• VAT: crypto exchanges are exempt from VAT, but accepting crypto payments can trigger standard VAT rules on the underlying product or service.
• Reporting: companies must declare their wallets and gains in annual accounts and follow local tax rules.

Rigorous management is key to avoiding penalties or audits.

Best practices to integrate crypto in business

To get started, companies should follow several steps:

• Choose regulated partners: work only with PSAN-registered or MiCA-compliant platforms.
• Establish an internal policy: define allocation, eligible assets, monitoring, and reporting.
• Train finance teams: educate accountants and CFOs on crypto accounting and risks.
• Anticipate taxation: calculate the impact of capital gains and align with the company’s financial strategy.
• Start cautiously: allocate 5–10% of cash reserves before gradually increasing.

This structured approach allows companies to benefit from crypto while keeping risk under control.

Conclusion

Crypto offers opportunities for yield and innovation in business, but requires strict compliance with taxation and regulation. Between MiCA in Europe, PSAN in France, and accounting obligations, prudence and transparency are essential.

By relying on compliant partners and clear strategies, companies can benefit from the crypto revolution while staying on the right side of the law.

Frequently asked 🤔

Can a company legally hold crypto?

Yes ✅. In both France and Europe, companies are allowed to buy, sell, and hold cryptocurrencies. The requirement is to comply with accounting and tax obligations.

Must crypto appear in annual accounts?

Absolutely. Crypto must be recorded as assets on the balance sheet at acquisition cost. When sold, any gains (or losses) are recorded as income or expenses.

What risks exist when using an unregulated platform?

Legal and financial risks: funds may be frozen, tax audits intensified, or penalties applied if the provider is non-compliant. Companies should stick to PSAN-registered or MiCA-compliant partners.

Are crypto payments subject to VAT?

Yes. The sale of goods or services remains subject to standard VAT, even if payment is made in crypto. The crypto is treated as a payment method, just like euros or dollars.

How to limit tax risks with crypto?

Keep detailed records of every transaction (purchase, sale, transfer), maintain clear accounting, and consult an accountant familiar with digital assets. This significantly reduces the risk of penalties.