Why Did Lawmakers Reject the Crypto Exit Taxes?
On October 30, the National Assembly rejected amendment I-3904, introduced by lawmaker Nicolas Sansu, by 55 votes to 27, with one abstention. The measure sought to bring cryptocurrency holdings within France’s existing exit-tax framework, which applies to certain unrealized capital gains when eligible taxpayers transfer their tax residence abroad.A second proposal, amendment I-3432, introduced by Mickaël Bouloux, was rejected by 60 votes to 31. It would have applied to unrealized gains on cryptocurrency portfolios exceeding €800,000 held by households that had been French tax residents for at least six of the preceding ten years.The measures targeted gains accumulated before departure rather than cryptocurrency sales executed after relocation. Their rejection means neither proposal has secured approval during the National Assembly’s examination of the budget.The votes reverse an earlier stage of the legislative process. On October 8, the Assembly’s Finance Committee approved an amendment extending exit taxation to cryptocurrency portfolios above €800,000, but committee approval did not guarantee support in the full chamber.For investors considering a change of tax residence, the distinction matters. France’s existing exit-tax provisions remain applicable to qualifying financial assets, but the rejected amendments have not extended those provisions to directly held cryptocurrencies.
Investor Takeaway
What Happens to the Proposed Stablecoin Tax?
Unlike the exit-tax amendments, a proposal targeting cryptocurrency-to-stablecoin conversions has already passed an individual vote in the National Assembly.On October 16, lawmakers approved amendment I-3898 by 38 votes to 37, with 25 abstentions. The proposal would end the existing tax deferral for certain exchanges of cryptocurrencies into fiat-referenced e-money tokens under the European Union’s Markets in Crypto-Assets Regulation.Under current French rules, qualifying crypto-to-crypto exchanges without additional cash payments generally do not immediately trigger capital gains taxation. The amendment would change that treatment for conversions into qualifying stablecoins, potentially creating a taxable event even when investors do not withdraw funds into conventional bank accounts.The proposed measure would apply from January 1, 2027, if enacted. However, the October 16 vote approved only an amendment, not the revenue section of the budget or the legislation as a whole.Its future therefore depends on the remaining parliamentary process. If the Assembly rejects the revenue section, amendments adopted during its examination would not automatically survive into the text transmitted to the Senate.The uncertainty is particularly relevant to investors using stablecoins to reduce exposure to cryptocurrency price volatility without converting their holdings into euros or other conventional currencies.
Could Self-Custody Wallet Reporting Still Become Mandatory?
French lawmakers are also considering reporting requirements for cryptocurrency holdings maintained outside custodial service providers.A proposal approved by the Finance Committee on October 9 would require individuals and legal entities to disclose directly held cryptocurrency wallets when their combined holdings reach at least €100,000 at year-end.As FinanceFeeds previously reported, the proposed requirements could expose noncompliant taxpayers to penalties of up to €10,000. The measure has not become law.Separately, lawmakers have proposed exempting cryptocurrency payments for goods and services from capital gains taxation when qualifying transactions total no more than €1,000 during a tax year.These proposals address different aspects of cryptocurrency taxation: reporting obligations, taxable portfolio conversions and small-value payments. Their legislative outcomes remain separate from the rejected exit-tax amendments.
Investor Takeaway
What Does the November 17 Deadline Mean?
The National Assembly faces a November 17 deadline for its first-reading examination of the 2027 budget. The timetable leaves lawmakers with limited time to resolve outstanding amendments and determine which revenue measures can proceed to the Senate.If the revenue section is rejected, the government’s original budget proposal would advance without the amendments adopted by lawmakers during that examination. That outcome could eliminate the current version of the stablecoin conversion tax, although a similar measure could still be proposed at a later legislative stage.For cryptocurrency investors, the next decisive development is therefore not another committee approval or isolated amendment vote. It is whether the National Assembly can approve the revenue section and preserve the crypto tax provisions already added to the draft.Until the budget completes the legislative process, France’s existing cryptocurrency tax rules remain in force, and none of the disputed proposals should be treated as an enacted tax obligation.