Do you know the country in which your cryptocurrency buying and selling platform is based? It is not always easy to answer this question, and for good reason, some platforms even maintain the vagueness! While Bitcoin (BTC) has no borders, buying and selling services are businesses like any other, subject to the laws of the country in which they are located. Taxes, security, legal protection … we will see that the origin of the platform on which you make transactions can have a significant impact on your experience. Everything you should know about the advantages of French platforms, such as Paymium, is in this article.
Warning : This article is brought to you by the company Paymium. Crypto investments are risky by nature, do your own research and invest only within the limits of your financial capacity. This article does not constitute an investment invitation.
Declare your taxes
Unless you decide to make an excuse for the boat accident (and thus pretend to ‘have lost your cryptocurrency’, no luck!), you will need to report your crypto purchases to the government fairly quickly. So that the latter can claim taxes from you, if necessary.
Long, painful, restrictive, the route to declare taxes is often feared by everyone. And that’s understandable, it’s not always easy.
Since 2020, in addition to the annual declaration of capital gains, the French tax regime requires the declaration of “digital asset accounts” opened, held, used or closed during the year (even when the balance of the account is empty). This obligation is only valid for companies domiciled outside France..
Likewise, all taxable transactions during the year must be attached to your return. Some French platforms provide for this purpose a complete and easy export of all transaction, deposit and withdrawal histories.
As well, French platforms are the ideal interlocutor to follow the evolution of legislation in your country. Being themselves subject to legal obligations, they will be able to notify you in the event of changes in regulations.
It can therefore be a real advantage to be on a French platform, in order to facilitate your tax return from the start, and to have interlocutors in front of you who have the same prerogatives as you.
Benefit from optimal legal protection
Since 2020, the French authorities have allowed exchange platforms to register as digital asset service provider (PSAN). This new statute imposes strict standards in terms of financial resources, organization and good conduct. These rules are all protections for consumers. The registration procedure is still too recent to have been completed by an exchange platform (excluding broker) but several players have already submitted their requests such as Paymium and Blockchain.io.
Know that as a French consumer of a service based in your country, you are protected by French law. Mediation by the AMF (Autorité des Marchés Financiers) may take place to try to resolve your dispute amicably. For consumers who reside in another EU country, the FIN-NET network may be competent to support you.
On the other hand, with a platform based abroad or an actor who practices illegally, your only recourse will be to file a complaint with the police or the gendarmerie. The chances of solving a case with a crook, especially when operating from abroad, are very low.
And the events of recent years have justified this search for protection. Whether it is through the various hacks that have taken place on multiple platforms, or outright bankruptcies and scams of others, many investors have found themselves without any recourse possible.
European standards are very strict when it comes to controlling the origin of funds on trading platforms. Some countries like France even impose additional regulations. These so-called KYC / AML (“Know Your Consumer” / “Anti-Money Laundering”) procedures control the origin of platform users and validate the source of their funds.
As a consumer, choosing a platform that implements these tools is the best way to ensure that your funds will only be exchanged with verified users. In the absence of a KYC / AML process, there can be no guarantee that the funds you are exchanging are not from criminal enterprises.
Requirements for the protection of your personal data
The “General Data Protection Regulation” (RGPD) harmonizes the rules in Europe on the processing of consumer data and follows on from the French Data Protection Act of 1978. This is one of the most demanding regulations in force. The CNIL website allows you to view the different levels of data protection around the world.
More specifically, as a customer of an exchange platform, you may be required to share information concerning your identity: name, date of birth, telephone, etc. Likewise, the platform holds information on your activity: balance, type transaction, frequency of purchase etc …
In accordance with the GDPR, a French exchange platform will never share this information without your consent. Data transfers are themselves strictly regulated and are only possible outside the EU with tools ensuring a sufficient level of protection. ATus, you have a new right, the so-called “data portability”, which allows you to retrieve data processed by an organization concerning you, for your personal use or to store them (find out more about the data affected by this right).
A service that understands you
French platforms most often have support services in your language. You will be supported in your operations by a personalized service. Local platforms are the most qualified to inform you about the particularities of your country. Depending on your needs, they will be able to point you to trusted services or direct you to the competent institutions.
And let’s not hide it, sometimes English is not the easiest to make yourself understood, especially when you encounter an urgent problem. In these moments, having a French platform is priceless.
As you may have discovered, there are many reasons to adopt a French buying platform. Favor the local, it’s not just for your plate! More seriously, it is important to understand all the services to which you are entitled by choosing a platform regulated by French law such as Paymium for example. The state forces us quite a bit on the crypto level, but it is doing this too to ensure a higher level of demand. Which can be interesting when we talk about the platform that will at least temporarily store your cryptocurrencies.
Hello, I’m Florian! I’m 24, I’m a man and I’m… Maybe I’m getting lost. I entered the Bitcoin, crypto and blockchain ecosystem at the end of 2017 and it has been love at first sight! You may know me under my secret identity: Cryptodidact! But, hush, when you see me with my glasses on, you have to see Florian, Hellmouth Deputy Editor … (those who have the reference, well done)