France Pulls Back on Crypto Exit Tax but Investors Aren't Out of the Woods Yet

France's National Assembly has postponed a planned vote on the revenue section of the country's 2027 state budget, extending parliamentary debate as hundreds of proposed amendments remain under review.

The Assembly was scheduled to vote on Tuesday, November 3, but lawmakers are instead continuing discussions on the revenue provisions, with 758 amendments still awaiting consideration. According to the Assembly's official schedule published after Monday's session, Tuesday's agenda includes questions to the government followed by further debate on the budget's revenue section.

This marks the second postponement of the vote. It was initially scheduled for October 20 but was delayed after lawmakers failed to complete their review of the proposed amendments, which had exceeded 2,000 at the time, according to Le Monde.

The Assembly faces a constitutional deadline to complete the first reading of the budget. If lawmakers reject the revenue section, the government's original budget proposal will be forwarded to the Senate without the amendments adopted during the Assembly's deliberations.

The delay comes as several proposed changes to France's cryptocurrency tax framework are being debated as part of the broader budget process.

French Lawmakers Reject Proposed Crypto Exit Tax

On Friday, October 30, the National Assembly rejected two amendments that sought to extend France's existing exit tax regime to unrealized cryptocurrency gains when taxpayers transfer their tax residence abroad.

The first proposal, which aimed to bring digital assets within the scope of the existing exit tax framework, was defeated by 55 votes to 27, with one lawmaker abstaining, according to the Assembly's official voting record.

A separate amendment was also rejected, receiving 31 votes in favor and 60 against. It would have applied the tax to unrealized gains on household cryptocurrency holdings exceeding €800,000 when an individual moved their tax residence outside France.

The proposed measure would have applied to individuals who had been subject to French taxation for at least six of the preceding 10 years.

The rejection means neither proposal was included among the amendments approved by lawmakers at this stage. However, it does not rule out further changes to cryptocurrency taxation in the 2027 budget, as other digital asset-related proposals remain under consideration.

Self-Custody Wallets and Crypto Payments Also in Focus

Beyond the rejected exit tax proposals, lawmakers are considering other measures that could affect how individuals report and use their cryptocurrency holdings.

One amendment would require individuals to declare digital assets held in self-custody wallets when their combined value reaches at least €100,000, based on their year-end valuation. Self-custody wallets allow users to retain direct control of their private keys rather than relying on a centralized exchange or service provider.

Another proposal seeks to exempt gains generated when cryptocurrencies are used to pay for goods and services, provided the total value of such payments does not exceed €1,000 during the tax year.

In a separate development, lawmakers approved an amendment on October 16 that would end the deferral of taxation on gains when cryptocurrencies are converted into fiat-backed stablecoins.

If retained in the final legislation, the change could make certain conversions that previously benefited from tax deferral subject to taxation.

These measures remain part of the legislative process. Parliamentary approval of an amendment does not, by itself, mean that it has become enforceable law.

What France's 2027 Budget Debate Means for Crypto Investors

The ongoing budget discussions highlight France's efforts to define how digital assets should be treated under its tax system, while exposing disagreements over how far those obligations should extend.

The rejection of the proposed exit tax measures represents a setback for efforts to tax unrealized cryptocurrency gains when investors leave the country. At the same time, lawmakers have approved an amendment concerning crypto-to-stablecoin conversions, while proposals covering self-custody disclosures and small-value crypto payments remain under discussion.

The debate goes beyond whether cryptocurrency gains should be taxed. It also raises questions about which transactions trigger a tax liability, what reporting obligations should apply to individual holders and how authorities should approach assets kept outside centralized platforms.

The outcome of the revenue vote and the final wording of the 2027 budget will determine which of these proposals move forward. Until the legislative process is complete, it is important to distinguish between amendments rejected by lawmakers, those approved at an earlier stage and measures that have actually entered into force.