French Parliament Approves Crypto Tax Reporting Rule for Holdings Over €100,000

Amendment I-2701 was approved on Tuesday with 150 votes in favor, 44 against, and eight abstentions, according to the Assembly's official voting records. The reporting threshold is to be evaluated on December 31 of the relevant tax year.

Separately, the Assembly rejected a proposal that would have exempted from taxation any crypto payment income for goods or services not exceeding 1,000 euros ($1,120) in a tax year. This rejection occurred by a vote of 69 to 14, as noted in the Assembly transcript.

This reporting obligation is part of the 2027 Finance Bill and must be retained in the final version of the legislation to take effect. The Assembly has a deadline of November 17 to complete the bill's first reading. Subsequently, the Senate is scheduled to begin discussions on November 20.

On Tuesday, the National Assembly postponed a second vote on the budget's revenue section to allow further debate on amendments. This vote, initially planned for October 20, has been rescheduled.

While the delay does not itself alter the budget significantly, the anticipated rejection of the revenue section could lead to the whole bill being rejected by the Assembly, including any provisions introduced via approved amendments, explained Faustine Fleuret, global head of public affairs at lending platform Morpho.

On the previous Friday, the Assembly dismissed two proposals that would have implemented exit taxes on unrealized crypto gains when taxpayers change their tax residency abroad.

However, on October 16, lawmakers approved an amendment to tax gains resulting from the conversion of cryptocurrencies into stablecoins. The measure applies specifically to stablecoins categorized as electronic money under EU regulations and needs to remain in the final legislation.

The French government's steps to formalize detailed tax reporting and taxation rules for cryptocurrency activities highlight growing regulatory scrutiny over digital assets. The final legislative outcomes will significantly influence how crypto holdings and transactions are taxed and reported in France.

Why: These legislative measures represent a key advancement toward greater transparency and oversight of cryptocurrency holdings and transactions in France, aiming to strengthen tax compliance and integrate crypto assets within the national tax system.