France’s crypto tax homework hits a 458–0 wall — amendments may get a Senate redo

France’s National Assembly rejected the revenue section of its 2027 state budget late Wednesday by a vote of 458–0 at first reading, with two abstentions, removing adopted crypto-related amendments from the bill sent to the Senate. The government will instead submit the original budget text, which could still be amended during the remaining legislative process. The Senate is scheduled to begin debating the finance bill on Nov. 20 and examine the revenue section’s articles on Nov. 23, according to its schedule.

The rejection followed the vote’s second postponement. After Monday’s sitting, the Assembly’s end-of-session notice scheduled questions to the government and continued debate on Tuesday, with 758 amendments still pending examination. The original Oct. 20 vote had also been delayed, then with more than 2,000 amendments awaiting debate, according to French newspaper Le Monde. The National Assembly had until midnight on Nov. 17 to complete its first-reading examination.

Before rejecting the revenue section, lawmakers adopted three crypto-related amendments. One approved Oct. 16 would tax gains when crypto assets are converted into fiat-pegged stablecoins. Another, adopted Tuesday, would require taxpayers to disclose self-custodied crypto holdings totaling at least 100,000 euros ($112,000), with the threshold assessed on Dec. 31 of the tax year. A third would increase penalties from 10,000 euros to 50,000 euros for crypto platforms that fail to provide information requested by tax authorities. None of the measures has become law.

The National Assembly also rejected two exit-tax proposals on Friday. One would have added crypto assets to France’s existing exit-tax regime and was defeated with 27 votes in favor, 55 against and one abstention. The second, rejected with 31 votes in favor and 60 against, would have taxed unrealized gains on household crypto holdings worth more than 800,000 euros ($897,000) when taxpayers transferred their tax residence abroad, provided they had been tax-resident in France for at least six of the preceding 10 years.

Other crypto proposals remain under consideration, including one requiring year-end reporting of self-custodied holdings worth a combined value of at least 100,000 euros ($112,000) and another exempting gains on crypto payments for goods and services when their total value does not exceed 1,000 euros ($1,120) during the tax year. Faustine Fleuret, global head of public affairs at lending protocol Morpho, told Cointelegraph before the vote that 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.”