European tax regulators are increasing their efforts to track cryptocurrency assets, but this also raises several hidden risks. A case exposed on January 9th serves as a clear example— a former French tax official was sentenced for abuse of power and is currently appealing.

The individual accused exploited her position to illegally access confidential tax databases, collecting large amounts of information on cryptocurrency investors. The data she obtained included sensitive details such as investor locations and capital gains. If this information were to be leaked, it would directly increase the risk of targeted attacks. Although investigations have not yet found evidence that she planned or executed actual attacks, this incident exposes a harsh reality: the official tax system itself could become a breach point for data leaks.

For the crypto community, this is not just an isolated warning. As global tax authorities strengthen their monitoring of digital assets, vulnerabilities in information security are increasingly being revealed. Investors need to realize that threats to asset privacy may come from unexpected sources.