French Senate Approves Bill for Automatic Exchange of Crypto Tax Data with Foreign Authorities

This bill underwent its initial reading on Tuesday and was forwarded to the National Assembly as Bill No. 3421 for further review.

The proposed law includes provisions for an agreement to exchange information related to cryptocurrency taxation, as well as updates to a pre-existing financial account information exchange agreement.

This crypto information-sharing agreement is founded on the Crypto-Asset Reporting Framework (CARF), which was created by the Organisation for Economic Co-operation and Development (OECD). CARF establishes unified standards for participating countries to collect and exchange cryptocurrency transaction data automatically.

France has already implemented crypto reporting requirements through its 2025 Finance Act. This act executes amendments related to crypto reporting under the EU’s Directive on Administrative Cooperation (DAC8). Under these rules, crypto service providers must report information about their clients and transactions to tax authorities, who then share these details with tax authorities in the users’ EU countries of residence.

French legislators are also considering alterations to cryptocurrency taxation in the 2027 budget. On October 16, the National Assembly approved an amendment to tax income derived from conversions into certain fiat-backed stablecoins starting January 1, 2027. However, this amendment has yet to become law.

Debate on the budget’s revenue section resumed on Tuesday, with a vote planned for November 3.

The DAC8 tax reporting framework has raised concerns over data security due to the exchange of personal data such as names, addresses, tax identification numbers, and transaction amounts among EU tax authorities, according to Faustine Fleuret, the global head of public affairs at the lending protocol Morpho, in an interview with Cointelegraph.

Fleuret emphasized that in countries where cryptocurrency holders have been subjected to physical attacks, leaks revealing who trades what and in what quantities pose not only privacy risks but also significant safety threats.

The European Commission intends to establish a centralized crypto reporting registry by the end of 2026, where tax authorities from each member state can access information about their tax residents’ crypto activities.

Fleuret cautioned that centralizing this sensitive cryptocurrency transaction information could create a single point of failure.

Fleuret’s comments align with an alarming increase in violent physical attacks against crypto investors, often called wrench attacks. In the first half of 2026, France was the location for 33 of the 52 confirmed wrench attack incidents worldwide, according to blockchain security firm CertiK.

In one March incident, criminals impersonating police officers robbed a French couple in their 50s of approximately $1 million worth of Bitcoin.

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The French Senate’s approval marks a significant step toward international cooperation in crypto tax compliance, reflecting growing efforts to enhance transparency and combat tax evasion involving cryptocurrencies across borders.