French National Assembly Rejects 2027 Budget Revenue Section, Strips Crypto Amendments
Late Wednesday, the French National Assembly voted to reject the revenue section of the 2027 state budget, effectively removing all cryptocurrency-related amendments from the bill before it proceeds to the Senate.
The official voting results recorded an overwhelming rejection of the revenue section, with 458 deputies voting against it, none in favor, and two abstentions. This section pertains to the government's income streams, including taxation.
Following this rejection, the government plans to submit the original, unamended budget text to the Senate, omitting the cryptocurrency provisions that lawmakers had previously added.
Despite this setback, there remains the possibility for these crypto-related proposals to be reintroduced in the Senate, where they will undergo further scrutiny as part of the budget approval process before potentially becoming law.
Faustine Fleuret, global head of public affairs at the credit protocol Morpho, had warned Cointelegraph ahead of the vote that dismissing the revenue section might lead to the entire budget bill being rejected in the National Assembly, including all the amendments adopted within it.
Before the overall rejection, the Assembly had passed three specific amendments related to cryptocurrency.
On October 16, lawmakers passed an amendment imposing taxes on profits generated from converting cryptocurrencies into stablecoins.
Then, on the following Tuesday, another amendment was adopted requiring taxpayers to report self-custodied cryptocurrency holdings valued at 100,000 euros (approximately $112,000) or more, with the valuation date set at December 31 of the tax year.
A further amendment increased penalties for crypto platforms failing to respond to tax authority information requests, raising fines from 10,000 euros to 50,000 euros.
The Senate is set to begin discussions on the finance bill on November 20, with a detailed review of the revenue section's articles scheduled for November 23, according to the parliamentary timetable.
The rejection of the budget's revenue section and removal of crypto amendments underscore the ongoing legislative uncertainty surrounding cryptocurrency regulation in France and highlight the challenges lawmakers face in integrating digital assets into fiscal policy.
This outcome will significantly influence how crypto-related fiscal measures progress and affect regulatory clarity moving forward.
Why it matters
The decision to strike down the revenue section with its crypto amendments reveals the complexities and political challenges inherent in formulating tax and regulatory policy for cryptocurrencies in France, which may delay or reshape future crypto taxation and reporting rules.
Prepared from the source material with AI-assisted editing and checked against the supplied facts.
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