French lawmakers are pushing for stricter cryptocurrency tax rules that could affect wealthy investors and holders of privately managed crypto wallets. The proposals include extending the country's exit tax to crypto assets worth more than €800,000 and introducing fines of up to €10,000 for failing to declare certain self-custody wallets. However, the measures still need further parliamentary consideration before they can become law.

France Proposes Exit Tax on Crypto Assets

France's National Assembly Finance Committee has backed a proposal to extend the existing exit tax to cryptocurrency holdings from January 2027. The measure would target individuals who move abroad after meeting the residency requirements and hold crypto assets exceeding €800,000 in combined value.

The tax would apply to unrealised gains, meaning profits on assets that have increased in value but have not yet been sold. The proposal aims to bring cryptocurrency investments in line with certain traditional financial assets. However, the amendment does not specify a separate tax rate for crypto holdings.

Undeclared Crypto Wallets Could Face €10,000 Fines

Another proposal would require taxpayers to declare self-custody crypto wallets with a combined value of at least €100,000 at the end of the year. Failure to comply could result in fines of up to €10,000.

Self-custody wallets allow users to control their cryptocurrency directly rather than holding it through an exchange. Supporters of the proposal argue that greater disclosure could help authorities combat tax evasion. Critics, however, have raised concerns about data security and the risks of exposing information about crypto holders.

Additional Changes Could Affect Crypto Investors

Lawmakers have also supported proposals involving stablecoin transactions and cryptocurrency losses. One amendment would make certain exchanges of crypto assets for stablecoins taxable, while another would allow investors to offset crypto losses against gains over a period of ten years.

Under current French rules, cryptocurrency gains are generally taxed when assets are converted into traditional currency or used to make purchases. The proposed stablecoin measure could therefore broaden the circumstances in which tax becomes payable.

What Happens Next?

The proposals are part of France's discussions over its 2027 budget and are not yet final law. Following the Finance Committee's rejection of the budget's revenue section, the cryptocurrency amendments will need to be resubmitted for consideration during parliamentary debates.

Lawmakers are expected to continue examining the budget before further votes and review by the Senate. The final outcome will determine whether the proposed exit tax, wallet disclosure requirements, and other measures are introduced in 2027.

For crypto investors, the debate signals France's growing focus on cryptocurrency taxation and financial transparency. However, the final rules and their practical implications will depend on the legislation ultimately approved by Parliament.

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