Key Points:
- New Reporting Threshold Approved: France’s National Assembly approved an amendment requiring taxpayers to report self-custodied cryptocurrency holdings worth at least €100,000 ($112,000) to tax authorities.
- Separate Tax Exemption Rejected: Lawmakers rejected a proposal to exempt cryptocurrency gains from small payments for goods and services, with the amendment receiving 69 votes against and 14 in favor.
- Final Budget Approval Pending: The reporting requirement forms part of the 2027 Finance Bill and must survive the remaining parliamentary process before becoming law.
France is moving toward tighter tax oversight of privately held cryptocurrency as lawmakers advance a reporting requirement covering substantial self-custodied digital asset holdings. The proposed measure would require taxpayers to disclose qualifying holdings worth at least €100,000 to tax authorities, extending reporting obligations beyond assets held through centralized exchanges.
The decision reflects a broader legislative effort to clarify the tax treatment of digital assets while increasing transparency around cryptocurrency ownership. However, the measure remains part of France’s proposed 2027 budget and is not yet an enacted legal requirement.
National Assembly Approves €100,000 Reporting Threshold
The French National Assembly approved amendment I-2701 on Tuesday in a vote of 150–44, with eight abstentions.
Under the proposal, taxpayers would be required to report self-custodied cryptocurrency holdings with a combined value of at least €100,000, equivalent to approximately $112,000.
The threshold would be assessed on December 31 of the relevant tax year.
The measure specifically targets cryptocurrency held in self-custodied wallets, bringing privately controlled digital assets within the proposed reporting framework.
Its approval represents a significant development for French cryptocurrency holders who maintain direct control over their assets rather than relying exclusively on centralized exchanges or custodial providers.
Nevertheless, the amendment must remain in the final version of the 2027 Finance Bill before the reporting obligation can take effect.
Proposal to Exempt Small Crypto Payments Rejected
Alongside the reporting amendment, lawmakers rejected a separate proposal that would have introduced a limited tax exemption for cryptocurrency payments.
The rejected amendment sought to exempt gains generated through cryptocurrency payments for goods and services when the total payments did not exceed €1,000, approximately $1,120, during the tax year.
The proposal was defeated by 69 votes to 14.
The outcome leaves the proposed exemption outside the legislation, maintaining the existing approach under which the suggested tax relief for small cryptocurrency payments would not be introduced through this amendment.
Together, the two votes illustrate the competing priorities within France’s cryptocurrency tax debate: increasing visibility into privately held digital assets while considering whether smaller everyday transactions should receive different treatment.
Broader Cryptocurrency Tax Measures Remain Under Debate
The self-custody reporting requirement forms part of a wider package of cryptocurrency-related tax proposals being considered through the 2027 budget process.
Earlier discussions included proposals to introduce exit taxes on unrealized cryptocurrency gains when taxpayers transfer their tax residence abroad. The National Assembly rejected two such proposals on Friday.
Lawmakers also approved an amendment on October 16 that would tax gains generated when cryptocurrency is converted into certain stablecoins.
The proposed measure covers stablecoins classified as electronic money tokens under European Union rules. Like the other amendments, it would still need to be retained in the final legislation to become law.
The range of proposals demonstrates that French lawmakers are considering several aspects of cryptocurrency taxation, including self-custody, stablecoin conversions, cross-border relocation and payments.
Budget Delays Create Uncertainty Over Final Legislation
The reporting amendment’s future remains tied to the progress of the 2027 Finance Bill.
The National Assembly postponed its scheduled vote on the budget’s revenue section for a second time as lawmakers continued debating amendments. The vote had originally been scheduled for October 20.
Faustine Fleuret, global head of public affairs at lending protocol Morpho, warned that the likely rejection of the revenue section could potentially result in the rejection of the entire bill, including provisions already adopted through amendments.
The National Assembly faces a November 17 deadline to complete its first reading of the legislation. Senate debate is scheduled to begin on November 20.
These procedural developments mean that approval of an individual amendment does not guarantee its inclusion in the final budget.
Outlook
France’s proposed €100,000 reporting threshold could introduce additional disclosure obligations for individuals holding substantial cryptocurrency balances in self-custodied wallets. However, the measure remains subject to the final budget process, making parliamentary negotiations the immediate factor to monitor. The treatment of stablecoin conversions, small cryptocurrency payments and unrealized gains also indicates that France’s digital asset tax framework remains under active development. For investors and digital asset holders, the final legislation will determine the scope of reporting obligations and the broader implications for private cryptocurrency ownership in France.
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