Bull Bitcoin has taken legal action in France to contest the country’s adoption of the European Union’s DAC8 crypto reporting regulations. The company argues that the framework compels crypto asset service providers to collect and share excessive amounts of customer data.
Legal challenge launched in France
Bull Bitcoin submitted its petition to the Conseil d’État, France’s highest administrative court. The DAC8 rules officially took effect from January 1, 2026, requiring crypto asset service providers to collect both customer and transaction data, report this information to France’s tax authorities, and enable automatic information exchange with other participating jurisdictions.
Mini glossary: DAC8 is the European Union’s latest update to its tax cooperation rules. This framework standardizes the exchange of customer and transaction data related to crypto asset transfers among tax administrations.
Bull Bitcoin insists that the system has gone beyond mere tax reporting, creating a broad pool of personal data including user identities, home addresses, and crypto activity records.
According to Bull Bitcoin, the framework is not limited to tax supervision. The company cautions that centralized databases storing identity details, residential addresses, and crypto transactions could become prominent targets for cybercriminals and organized crime groups.
Core objection: Mandatory automatic reporting
Bull Bitcoin highlights that under the previous system, customer information was shared only upon lawful request by authorities or if suspicious activity was detected. However, DAC8 mandates an automatic reporting process—resulting in data transfers even in the absence of any wrongdoing.
The company underlines that this automatic reporting model circulates sensitive financial data more broadly, potentially increasing security risks.
The company also points to a recent surge in kidnapping and violence targeting crypto asset holders in some countries. Bull Bitcoin warns that large-scale financial data falling into the wrong hands could further amplify these dangers.
Case could escalate to higher courts
Bull Bitcoin is seeking the annulment of the decision implementing DAC8 in France. The company has stated its readiness to escalate the case to the Court of Justice of the European Union or France’s Constitutional Council, if necessary. Bull Bitcoin is known for providing Bitcoin-focused trading and custody services.
This is not the first time the crypto industry has pushed back against regulatory reporting requirements. In the United States, industry representatives have also filed lawsuits challenging the Internal Revenue Service’s broker reporting rules and transaction disclosure obligations.
Similar objections raised in the US
These cases, brought before various courts including the US District Court for the Northern District of Texas, argued that the new rules violate the Fourth and Fifth Amendments of the US Constitution and the Administrative Procedure Act. Courts have generally stopped short of fully repealing tax reporting regulations but have pressured regulators to clarify definitions or narrow the scope of their rules.
In a separate legal development, Thai authorities issued an arrest warrant for Chinese businessman Wang Yicheng, alleging that he played a central role in an illegal crypto mining network that reportedly consumed around $28 million worth of electricity without authorization.
