French lawmakers reject taxes on unrealized crypto gains

Traders Union
All News
Crypto
France rejects crypto exit taxes

Highlights

France rejected two cryptocurrency exit-tax proposals.
The budget vote was delayed with 758 amendments pending.
Wallet reporting and stablecoin tax changes remain unresolved.

The Assembly postponed its vote on the budget's revenue section for a second time, with 758 amendments awaiting consideration after Monday's session. Lawmakers were scheduled to resume debate on November 3, according to crypto.news. The delay follows an earlier postponement on October 20, when more than 2,000 amendments remained unresolved.

Lawmakers reject taxes on unrealized crypto gains

The first rejected amendment, introduced by Nicolas Sansu, would have extended France's existing exit-tax system to certain cryptocurrency holdings. The proposal covered eligible assets held directly, through exchanges, or in self-custody wallets. It targeted unrealized gains when qualifying investors transferred their tax residence abroad, beginning January 1, 2027.

Lawmakers defeated the measure on October 30 by 55 votes to 27, with one abstention. A separate proposal from Mickaël Bouloux also failed, receiving 31 votes in favor and 60 against. That amendment targeted households with cryptocurrency holdings exceeding €800,000 and investors who had lived in France for at least six of the previous 10 years.

Wallet reporting and stablecoin rules remain unsettled

Other cryptocurrency tax measures remain under consideration despite the rejection of the exit-tax proposals. One would require individuals holding at least €100,000 in self-custodied digital assets to report those holdings to tax authorities. Failure to comply could result in penalties reaching €10,000, although the requirement has not become law.

Lawmakers are also considering an exemption for cryptocurrency payments totaling no more than €1,000 annually. Another amendment, approved during parliamentary examination on October 16, would make certain conversions into fiat-backed stablecoins taxable. Current rules generally allow eligible cryptocurrency exchanges without immediately triggering capital gains tax, making the proposed change significant for active investors.

Budget deadline increases uncertainty for investors

The National Assembly has until midnight on November 17 to complete its first reading of the budget. If lawmakers reject the revenue section, amendments approved during that stage would not accompany the government's original text to the Senate. The broader budget process faces a constitutional deadline of December 17.

For cryptocurrency investors, the rejected exit taxes remove two immediate proposals but do not settle France's wider approach to digital asset taxation. Reporting obligations, stablecoin transactions, and small cryptocurrency payments could still face new rules. With hundreds of amendments outstanding, their final treatment will depend on the remaining parliamentary negotiations and subsequent legislative approval.

Earlier, we reported that France advances bill to expand automatic crypto tax data sharing.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.