France's National Assembly on November 5 rejected the revenue section of the 2027 national budget bill by a vote of 458 against, 0 in favor, and 2 abstentions, consequently voiding three cryptocurrency-related amendments that had previously been passed. The French government will next send the original budget text without these provisions to the Senate for deliberation.
The three amendments that were shelved target different taxation and reporting stages. The first brings gains generated from converting cryptocurrency into stablecoins within the scope of taxation; the second requires taxpayers to proactively report holdings of self-custodied crypto assets worth at least €100,000 (approximately $110,000); and the third raises the fine for cryptocurrency platforms that fail to provide information as required by tax authorities from €10,000 (approximately $11,000) to €50,000 (approximately $56,000).
Notably, the extreme result of 458 votes against and zero in favor on the revenue section shows clear disagreements among party groups over the budget's funding arrangements. Crypto provisions were not the only point of contention, but they fell along with the package vote.
Note: Currency conversions based on €100,000 ≈ $110,000, €10,000 ≈ $11,000, and €50,000 ≈ $56,000.
These proposals are not finished yet. The Senate is scheduled to begin deliberating the budget bill on November 20 and discuss the revenue section article by article on November 23. The relevant amendments still have a chance to be reintroduced at the Senate stage, but must complete the subsequent legislative process before formally taking effect.
From an institutional design perspective, France's latest legislative direction reflects European regulators' efforts to gradually bring crypto assets into the existing tax and reporting framework. In particular, the disclosure of self-custodied wallet holdings touches on taxpayers' reporting obligations for assets controlled by private keys, and remains controversial in both practical enforcement and privacy boundaries. The taxation of stablecoin conversion gains also raises questions about how transaction types are classified; once implemented, it will change the tax cost for investors adjusting their positions.
For the market, the temporary invalidation of the bill means related compliance pressure will not materialize in the short term. French local crypto platforms and holders of self-custodied assets can still maintain current practices; however, since Senate deliberations are scheduled for late November, the policy direction has not changed, and industry participants must still prepare in advance for reporting obligations and heavier penalties. The key points to watch going forward are whether the Senate reintroduces the three provisions as-is and how much content the final version can retain in bicameral negotiations.
