France’s National Assembly has rejected the revenue section of its proposed 2027 budget, removing several crypto tax and reporting amendments from the version now moving to the Senate. The vote means proposals to tax crypto-to-stablecoin conversions and require disclosure of large self-custodied wallets will not become law in their current form.
Lawmakers rejected the revenue section by 458 votes to none, with two abstentions, on November 4. Because revenue provisions must be approved before the Assembly can move to spending measures, the rejection halted the budget’s progress in the lower chamber.
What France removed from the budget
The most important proposal was an amendment adopted on October 16 that would have treated certain cryptocurrency-to-stablecoin conversions as taxable events from January 2027. It would have applied to conversions into stablecoins classified as electronic money tokens under the European Union’s Markets in Crypto-Assets regulation.
Under France’s current rules, eligible crypto-to-crypto exchanges generally do not create an immediate capital gains tax. Investors usually face tax only when they convert crypto into euros or another fiat currency, or use crypto Budget in a taxable transaction.
If the amendment had passed, someone converting Bitcoin into a qualifying stablecoin could have owed capital gains tax before moving any money to a bank account. The proposal passed the Assembly narrowly by 38 votes to 37, with 25 abstentions, before being removed with the wider revenue section.
Self-custody reporting plan also dropped
Another affected amendment would have required taxpayers to report self-custodied crypto holdings worth at least €100,000, or about $112,000. The threshold would have been measured using the total value of eligible assets on December 31 of the relevant tax year.
The proposal passed on November 3 by 150 votes to 44, with eight abstentions. It would have imposed penalties of up to €10,000 for non-compliance, although it would not have created a new annual tax on the reported assets.
Public Action and Accounts Minister David Amiel questioned whether self-reporting would actually identify people deliberately hiding crypto holdings. Finance Committee general rapporteur Philippe Juvin supported disclosure in principle but questioned the proposed thresholds, which had included €5,000 and €50,000 options before lawmakers chose €100,000.
A separate amendment would have increased penalties for crypto platforms that failed to provide information requested by tax authorities from €10,000 to €50,000.
Why the proposals were controversial
The debate reflected a wider disagreement over how France should tax digital assets without discouraging innovation. Faustine Fleuret, global head of public affairs at lending protocol Morpho, warned that taxes on crypto-to-stablecoin conversions, wallet disclosure rules, and exit taxes could reduce France’s attractiveness to crypto businesses.
She said finance is changing faster than tax law and regulation, and urged policymakers to design rules that support growth, jobs, and technological independence. Fleuret also stressed the importance of preserving self-custody and the technical foundations of decentralized finance.
The stablecoin proposal was especially sensitive because it would have taxed a conversion before an investor actually cashed out. Critics argued that this could create a tax bill without the investor receiving euros, making everyday portfolio management more complicated.
As governments reconsider how stablecoins budget should be taxed and regulated, understanding the major assets in this market becomes increasingly important. Read our comparison of USDT vs USDC to learn how two leading dollar-pegged stablecoins differ.
Exit-tax proposals were rejected earlier
The budget debate also included two attempts to extend France’s exit-tax framework to cryptocurrency holdings. Both were rejected before the broader revenue section failed.
On October 30, lawmakers rejected an amendment from Nicolas Sansu that would have applied exit-tax rules to qualifying unrealized crypto gains when eligible taxpayers moved abroad. It received 27 votes in favor and 55 against, with one abstention.
Another amendment, introduced by Mickaël Bouloux, would have targeted unrealized gains on household crypto holdings above €800,000 when eligible investors moved their tax residence outside France. It failed by 60 votes to 31.
Changes in cryptocurrency tax regulations can affect how investors calculate and report their digital asset gains. To better understand their potential tax obligations, readers can explore our Crypto Tax Calculator 2026 and learn how crypto-related taxes are estimated.
DAC8 reporting continues separately
The rejection of France’s self-custody amendment does not end all crypto reporting in the country. France is preparing to exchange more transaction data under the European Union’s DAC8 tax transparency framework.
DAC8 requires covered crypto service providers to collect information on reportable transactions involving EU residents from January 2026. The first exchanges of that information between tax authorities are scheduled for 2027.
Unlike the rejected French amendment, DAC8 places reporting duties on qualifying service providers. It also covers certain transfers involving wallets controlled directly by their owners.
The French government has faced legal challenges over its DAC8 implementation. Bull Bitcoin and Paymium filed an emergency application raising concerns about the collection and storage of user data, but the Council of State rejected it in September. The court’s emergency ruling did not settle their separate challenge to the implementing decree.
What happens next
The Senate is scheduled to begin debating the 2027 finance bill on November 20. Lawmakers will examine the revenue section’s articles from November 23, meaning the dropped crypto amendments could return.
Any revived proposal would still need approval from both chambers before becoming law. After the Senate review, lawmakers from the Assembly and Senate may try to agree on a final version of the budget.
France faces a constitutional deadline of December 17 for the wider budget process. Prime Minister Sébastien Lecornu’s government could also use Article 49.3 of the Constitution to advance the budget without a conventional parliamentary vote, though that move could trigger a no-confidence motion.
For now, French crypto investors do not face the proposed stablecoin conversion tax or the €100,000 self-custody reporting rule. But the Senate debate could bring similar measures back, so the final 2027 budget will remain important for France’s digital asset sector.
