The tax authorities have tried to gain direct and permanent access to all transactions carried out on all bank accounts opened in France.
➡ Paying a cryptocurrency salary to escape Bercy’s clutches is tempting. But … is it legal?
Currently, the French law partially allows the salary in cryptocurrency.
The article L143-1 of the Labor Code states that: the salary must be paid in fiat currency which is legal tender in France ” And ” salary must be paid in cash, by cross-check or by bank or post office transfer»Pursuant to article L3241-1 of the same code.
However, the article L143-1 which forced employers to pay wagesin metallic or fiduciary moneyit was repealed a few years ago. Today, no article in the French Labor Code mentions compulsory payment in euros.
Furthermore, even the jurisprudence has come to express itself on the matter by recalling the aforementioned articles of the Labor Code. Salary payments can only be made in legal tender currency in France, in euros or in any other internationally recognized currency. Therefore, since France does not recognize any legal value for cryptocurrencies, the payment of salaries is prohibited.(CA Chambery, June 4, 2021)
French law, on the other hand, authorizes the collection of part of his salary in a form other than a fiduciary currency having legal tender in the national territory.
Technically, it would be possible to collect rewards for work at risk, cold, Sunday or night, in cryptocurrency through a BTC or ETH address. The GMO Internet Group in Japan has already implemented this bitcoin bonus system for its employees; this idea comes to us from the moment when bosses offered bonuses to their employees through vouchers.
➡ However, Law 1uh February 2016 stipulates that merchants and employers cannot refuse an IBAN based on the country code. Refusal of a foreign RIB is not legal, as long as the country is part of the SEPA zone.
Therefore, as long as most of the salary is collected in fiat currency on a bank account, this is still possible.
The difficulty therefore lies in paying in cryptocurrency as the problem most often comes from the bank account as it is hosted by a crypto bank. Most often, these bank accounts are assigned to a foreign IBAN. Provided that the foreign RIB is not in the SEPA zone, the law of 1uh February 2016 cannot be applied.
Today salary compensation in cryptocurrency has advantages and disadvantages. For example, since bitcoin is not a legal tender in France. Not being protected by the state, in case of hacking of the computer systems of the cryptocurrency bases, no protection will be granted by the state. Furthermore, as cryptocurrencies are mostly volatile and their value is changing, there is no way to ensure financial stability.
But cryptocurrency also has its advantages as it has a certain payment speed and little or no transaction costs.
However, some countries have already decided to legalize the payment of salaries in cryptocurrencies. New Zealand is the first country in the world to allow the legalization of cryptocurrency wages in August 2019.