French National Assembly Mandates Crypto Asset Disclosure for Holdings Over €100,000

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The French National Assembly has approved a legislation amendment requiring taxpayers to declare crypto assets worth over €100,000 held in self-custody. This regulation considers the total amount as of December 31 of the corresponding tax year.

Amendment Clears Key Legislative Hurdle

Amendment I 2701 was passed on Tuesday with a vote of 150 in favor and 44 against, while eight lawmakers abstained. The passed resolution obliges users to disclose their self-custodied crypto holdings when they exceed a specific threshold.

As a decisive body in France’s legislative process, the National Assembly plays a pivotal role in budgetary and tax regulations. This amendment is part of the 2027 Finance Bill, but it must be preserved in the final version to come into effect.

The €100,000 threshold will be assessed based on self-custodied crypto assets held as of December 31 of the relevant tax year.

Proposal for Limited Tax Exemption Rejected

The Assembly also rejected a separate proposal that sought to establish a limited tax exemption for gains from crypto-assets used for payments of goods and services. This exemption aimed to waive taxes on crypto transactions not exceeding €1,000 within a tax year.

This proposal was voted down with 69 against and 14 in favor, halting any tax relief measures for minor crypto spending from advancing in the legislative process.

The Assembly did not pass the proposal allowing tax exemption for crypto payments under €1,000.

Budget Timeline and Legislative Future

The disclosure requirement is being considered as part of the 2027 budget discussions. The Assembly is expected to complete its first reading of the bill by November 17, with Senate deliberations scheduled to begin on November 20.

A vote intended for Tuesday on the revenue section of the budget was postponed for the second time. Originally planned for October 20, the vote was rescheduled as lawmakers continue to debate amendment proposals.

Faustine Fleuret, Head of Global Public Policy at Morpho, indicated that rejection of the budget’s revenue portion could impact the entire legislative proposal. Morpho is recognized as a protocol operating in the crypto lending sector.

Other Crypto Tax Initiatives

Last Friday, lawmakers rejected two proposals that would have imposed an exit tax on unrealized crypto gains when taxpayers relocate abroad, preventing this taxation approach from moving forward.

Conversely, on October 16, the Assembly accepted another amendment to tax gains arising from converting crypto assets into stablecoins. This regulation targets stablecoins recognized as electronic money tokens under European Union rules and must be included in the final version to take effect.