Key Highlights:
- French lawmakers introduced a series of crypto-focused tax amendments aiming to curb evasion, citing a massive gap between realized crypto gains and declared assets in 2021.
- Proposals include mandatory wallet disclosure, an exit tax on digital asset holdings over €800,000, and ending tax deferrals on fiat-backed stablecoin conversions.
- Despite approval in the Finance Committee, the broader revenue section was rejected, requiring the measures to be reintroduced as the National Assembly debates the budget.
French Lawmakers Target Crypto Assets to Curb Tax Evasion
In an effort to tighten oversight on digital assets, French lawmakers have pushed forward legislative measures designed to address significant disparities in cryptocurrency tax reporting. The sponsors said the measure was intended to combat tax evasion, citing a parliamentary inquiry into the taxation of wealthy individuals, which found that crypto capital gains reached 3.5 billion euros in 2021, while only 400 million euros in crypto holdings were declared to tax authorities that year.
The amendment focusing on wallet disclosure was put forward by Charles de Courson, Jean-Pierre Bataille, and Michel Castellani, who represent the Liberties, Independents, Overseas and Territories (LIOT) parliamentary group in France. The initiative formed part of a package of five crypto-related amendments that secured approval from the National Assembly’s Finance Committee last week.
Key Proposals: Stablecoin Deferrals and an €800,000 Exit Tax
Beyond digital wallet reporting mandates, the package features several targeted fiscal measures aimed at digital asset investors. Other proposals previously reported by Cointelegraph included imposing an exit tax on cryptocurrency holdings exceeding 800,000 euros when taxpayers move abroad and ending tax deferrals on conversions into fiat-backed stablecoins.
These initiatives reflect a concerted legislative push to treat digital wealth similarly to traditional capital assets, preventing capital flight and closing loopholes that allow investors to avoid taxable events through intermediary trades with fiat-pegged stablecoins.
Procedural Obstacles and Parliamentary Debates
Despite passing the committee review, the initiatives face an uncertain procedural path. While the Finance Committee adopted the amendments on Friday, it subsequently rejected the revenue section of the broader 2027 budget bill by 31 votes to 3. This rejection disrupts the immediate momentum of the approved tax provisions.
Consequently, lawmakers are scheduled to begin debating the revenue section of the budget in the National Assembly on Tuesday, starting from the government’s original draft. The crypto amendments would need to be submitted again and approved during the parliamentary proceedings before becoming part of the legislation, according to French tech publication Clubic.
Why This Matters
The legislative effort underscores intensifying scrutiny by European authorities over undisclosed digital wealth and tax transparency. By revealing that billions in crypto gains generated only a fraction in declared holdings, French authorities have identified cryptocurrency as a key focal point in their revenue enforcement agenda. However, because the Finance Committee rejected the wider revenue bill, the implementation of these measures relies on whether lawmakers can successfully reintroduce and pass the amendments on the National Assembly floor during ongoing budget deliberations.
Frequently Asked Questions
What prompted the proposed French crypto tax amendments?
Lawmakers cited findings from a parliamentary inquiry into the taxation of high-net-worth individuals, which revealed that while crypto capital gains hit €3.5 billion in 2021, taxpayers declared just €400 million in crypto holdings to tax authorities during the same period.
What specific measures are being proposed for cryptocurrency holders?
The measures include mandatory wallet disclosures, an exit tax targeting cryptocurrency portfolios exceeding €800,000 for taxpayers relocating outside France, and eliminating tax deferrals on trades into fiat-backed stablecoins.
Are the crypto tax amendments officially enacted into law?
No. Although the Finance Committee approved the five amendments, it voted 31 to 3 to reject the overall revenue section of the 2027 budget bill. The measures must be formally reintroduced and passed during National Assembly debates, which commence from the government’s initial draft.
