France’s Budget Rejection Removes Crypto Tax Amendments

France’s National Assembly has rejected the revenue section of the country’s proposed 2027 budget, removing several cryptocurrency tax and reporting amendments from the version of the legislation now heading to the Senate.

The vote took place on November 4, when 458 lawmakers voted against the revenue section, with none supporting it and two abstaining, according to the National Assembly’s official voting record.

The decision means that amendments adopted during the Assembly’s earlier budget debates will not be carried into the text proceeding to the Senate. Among the affected proposals were a tax on certain cryptocurrency-to-stablecoin conversions and a requirement for taxpayers to declare qualifying self-custodied crypto holdings worth at least €100,000.

However, the measures have not been permanently ruled out. Lawmakers in the Senate could introduce them again during the next stage of the budget process.

Stablecoin Conversions and Self-Custody Reporting Affected

One of the most closely watched proposals concerned the tax treatment of cryptocurrency-to-stablecoin conversions.

An amendment adopted by the National Assembly on October 16 would have treated certain conversions into stablecoins classified as electronic money tokens under the European Union’s Markets in Crypto-Assets Regulation (MiCA) as taxable transactions from January 2027.

Under France’s existing framework, exchanges between eligible cryptocurrencies generally do not trigger immediate capital gains taxation unless the investor converts the assets into fiat currency or uses them in another taxable transaction.

The proposed change would have altered that treatment for qualifying stablecoin conversions, potentially triggering tax liabilities even when investors did not withdraw funds into traditional currency.

Another amendment, approved on November 3 by 150 votes to 44, sought to require taxpayers to disclose qualifying self-custodied cryptocurrency holdings worth at least €100,000.

The proposed threshold would have been calculated using the combined value of eligible holdings at the end of the tax year. The measure concerned disclosure obligations rather than introducing a separate annual tax on those assets.

Both proposals have now fallen out of the Assembly's budget text following the rejection of its revenue section.

Senate Review Leaves the Proposals Open

The rejection follows several weeks of debate over the proposed changes to France’s crypto tax framework.

As previously reported by Unlock Blockchain in its coverage of France’s proposed crypto exit tax and self-custody reporting rules, lawmakers had considered a range of measures affecting digital asset investors, including taxation of unrealized gains when individuals move their tax residence abroad.

The Assembly had already rejected two amendments seeking to extend the country's exit-tax regime to certain unrealized cryptocurrency gains. Those proposals were separate from the stablecoin conversion and self-custody reporting amendments that subsequently gained support during the budget debate.

The latest vote changes the status of the wider package: rather than proceeding to the Senate with the amendments previously adopted by the Assembly, the government's original budget text moves forward without them.

The Senate is scheduled to begin debating the 2027 finance bill on November 20, with examination of the revenue section set to start on November 23. Senators could revisit the crypto-related proposals through new amendments.

The final treatment of these measures will therefore depend on the Senate's deliberations and the subsequent legislative process.

France's Crypto Tax Reporting Framework Continues to Develop

The budget dispute is taking place alongside a broader expansion of cryptocurrency tax transparency in France and across the European Union.

France is preparing to implement the EU's DAC8 framework, which requires covered crypto-asset service providers to collect and report information about certain transactions involving EU residents. The first exchanges of information between tax authorities are scheduled for 2027, based on reportable activity beginning in 2026.

This reporting framework is distinct from the proposed self-custody disclosure amendment. DAC8 places reporting obligations on covered service providers, while the rejected budget measure would have introduced a direct declaration requirement for individuals holding qualifying assets in self-custody wallets.

Unlock Blockchain previously examined France's move toward international crypto tax data-sharing under DAC8, highlighting how the framework is expected to expand the information available to tax authorities.

The distinction between transaction reporting by service providers and direct disclosure by individual holders remains important as policymakers determine how digital assets should be monitored and taxed.

For now, the National Assembly's rejection has removed several proposed crypto tax changes from the budget text, but the Senate's review leaves open the possibility that some could return before France's 2027 fiscal framework is finalized.