The French National Assembly approved an amendment requiring taxpayers to declare self-custodied cryptocurrency holdings worth €100,000 or more, adopting the measure 150-44 as part of the 2027 Finance Bill. The provision must survive the remaining budget process to become law.
Key Takeaways
- French National Assembly adopts Amendment I-2701 150-44, requiring reporting of self-custodied crypto holdings ≥€100,000 ($112,000) as of Dec. 31 annually.
- Measure part of 2027 Finance Bill; must survive full budget process including Senate review (starts Nov. 20) and joint committee reconciliation.
- Assembly rejected €1,000 crypto payment tax exemption (69-14) and two exit tax proposals on unrealized gains for tax emigrants.
- Budget revenue section vote postponed twice; risk of entire bill rejection remains per Morpho's Faustine Fleuret.
- Amendment aligns France with EU DAC8 directive on crypto-asset reporting and extends domestic tax visibility to non-custodial wallets.
Executive Intelligence Brief
Amendment Details and Voting Breakdown
Amendment I-2701 was adopted Tuesday with 150 votes in favor, 44 against, and eight abstentions, according to the Assembly's official voting record. The €100,000 threshold — approximately $112,000 — would be assessed on Dec. 31 of each relevant tax year. The reporting requirement targets self-custodied assets specifically, addressing a gap where holdings kept off centralized exchanges currently escape automatic reporting frameworks.
In a related vote, lawmakers rejected a separate amendment that would have exempted gains on crypto payments for goods and services up to €1,000 ($1,120) per tax year. That proposal was defeated 69-14. On Friday, the Assembly also rejected two proposals that would have applied exit taxes to unrealized crypto gains when taxpayers transfer their tax residence abroad.
Legislative Context and Budget Process Risk
The crypto measures form part of the broader 2027 Finance Bill, which remains subject to the full parliamentary budget process. The Assembly postponed its scheduled vote on the bill's revenue section for the second time Tuesday as debate on amendments continued; the vote was originally slated for Oct. 20. The Assembly faces a Nov. 17 deadline to complete its first reading, with Senate debate scheduled to begin Nov. 20.
Faustine Fleuret, global head of public affairs at lending protocol Morpho, warned that the "likely rejection" of the revenue section could "result in the rejection of the entire bill in the National Assembly, including provisions adopted by way of amendments." The government could invoke Article 49.3 of the French Constitution to force the bill through without a vote, though this carries political risk.
Alignment with EU DAC8 and Broader Regulatory Trend
The self-custody reporting requirement aligns France with the EU's eighth Directive on Administrative Cooperation (DAC8), which mandates automatic exchange of information on crypto-asset transactions and holdings across member states. DAC8 extends reporting obligations to crypto-asset service providers and, critically, establishes frameworks for tracking self-custodied assets. France's amendment transposes this directive domestically while setting a clear monetary threshold.
Separately, lawmakers approved an amendment on Oct. 16 that would tax gains from converting crypto into stablecoins classified as electronic money tokens under EU rules. That measure also requires retention in the final law.
Implications for Holders and Market Participants
The €100,000 threshold targets high-net-worth individuals and entities with significant self-custodied positions, rather than retail users. However, the measure establishes a precedent for mandatory disclosure of non-custodial holdings, which could be lowered in future finance bills. Compliance will require reliable valuation methodologies for Dec. 31 snapshots, potentially creating demand for specialized tax reporting tools.
Rejection of the €1,000 payment exemption signals legislative resistance to creating de minimis carve-outs for crypto spending, maintaining the principle that all disposal events are potentially taxable. The defeated exit tax proposals indicate lawmakers are not yet ready to extend unrealized gains taxation to crypto emigration events.
Forward Outlook and Key Milestones
The immediate focus is the Nov. 17 deadline for the Assembly's first reading and the Nov. 20 start of Senate debate. If the revenue section is rejected, the entire bill — including all adopted amendments — could fall, requiring the government to reintroduce provisions in a new legislative vehicle or invoke Article 49.3. The joint parliamentary committee (Commission Mixte Paritaire) will subsequently reconcile Assembly and Senate versions before final votes in both chambers. Implementation timelines remain unspecified pending final enactment.
