French Assembly drops crypto tax proposals from 2027 budget

The vote on November 4 rejected the budget’s revenue section, meaning the government’s original proposal will proceed to the Senate without amendments approved during Assembly debates. Among those dropped was a measure that would have taxed certain cryptocurrency-to-stablecoin conversions from January 2027. It had passed an earlier Assembly vote by 38 to 37, with 25 abstentions.

Another amendment, approved on November 3 by 150 votes to 44, with eight abstentions, would have required taxpayers to report qualifying self-custodied crypto holdings worth at least €100,000. The threshold would have been assessed on December 31 of the relevant tax year, and non-compliance could have drawn penalties of up to €10,000. The proposal concerned disclosure, not a new annual tax on those holdings. A separate amendment to raise penalties for crypto platforms that failed to provide information requested by tax authorities, from €10,000 to €50,000, was also removed.

Faustine Fleuret, global head of public affairs at lending protocol Morpho, said in a LinkedIn post that lawmakers should consider how tax and regulation keep pace with financial innovation. She cited the stablecoin tax, wallet disclosures and exit taxes as proposals that could affect France’s competitiveness, and called for protection of self-custody and decentralised finance’s technological foundations. The Assembly had separately rejected two proposed extensions of exit-tax rules to crypto holdings.

The Senate is scheduled to start debating the finance bill on November 20 and examine its revenue section from November 23. The amendments may be considered again there. France’s broader budget process has a constitutional deadline of December 17; Prime Minister Sébastien Lecornu’s government could also use Article 49.3 to advance the budget without a conventional vote, subject to a possible no-confidence motion. The rejected self-custody proposal is distinct from the EU’s DAC8 framework, which requires covered service providers to collect information on reportable transactions from January 2026, with the first exchanges between tax authorities scheduled for 2027.