French lawmakers reject two crypto exit-tax proposals targeting unrealized gains

France’s National Assembly voted down two proposals to tax unrealized crypto gains of investors leaving the country on October 30, 2026, giving holders a reprieve while the 2027 budget talks stall.

With hundreds of amendments still awaiting examination, lawmakers face mounting pressure to complete the first-reading process before the November 17 deadline.

The latest developments highlight the uncertainty surrounding France’s approach to digital asset taxation, particularly as legislators consider additional reporting requirements and changes to how cryptocurrency transactions are taxed.

French lawmakers reject two crypto exit-tax proposals

The two rejected amendments sought to expand France’s existing exit-tax framework to cover cryptocurrency holdings and unrealized gains belonging to taxpayers moving abroad.

The first proposal, identified as Amendment 3904, aimed to bring crypto assets within the scope of the country’s existing exit-tax provisions. Lawmakers rejected it by 55 votes against, 27 in favor and one abstention, according to the National Assembly’s official voting record.

A second proposal, Amendment 3432, received 31 votes in favor and 60 against. It sought to introduce taxation on unrealized gains from household cryptocurrency holdings valued above €800,000 (approximately $897,000).

Under the proposed conditions, the measure would have applied to individuals transferring their tax residence outside France after maintaining French tax residency for at least six of the preceding 10 years.

Had the amendments passed, affected taxpayers could have faced tax assessments on gains that existed on paper, even if they had not sold their digital assets or converted them into traditional currency.

The rejection means neither proposed crypto exit-tax measure was incorporated into the budget through these amendments. However, the outcome does not represent a permanent prohibition on future legislative attempts to tax unrealized cryptocurrency gains.

2027 budget vote delayed as 758 amendments remain

The cryptocurrency tax decisions come amid broader disagreements over France’s 2027 public spending and revenue plans.

The National Assembly was expected to vote on the budget’s revenue section, but lawmakers instead continued examining the proposed legislation. The Assembly’s published schedule showed that 758 amendments remained pending following Monday’s sitting.

This is the second postponement of the planned vote. The original October 20 timetable was also disrupted after more than 2,000 amendments remained to be examined, according to French newspaper Le Monde.

The delays leave lawmakers with limited time to complete the first-reading examination. Under the parliamentary timetable, the National Assembly must finish its review by midnight on November 17.

The political divisions surrounding the budget have also raised doubts about whether the revenue section can secure sufficient support.

Eric Coquerel, president of the National Assembly’s Finance Committee, told Le Monde that the revenue section had little prospect of passing, arguing that opponents considered it insufficiently amended while government supporters believed it had been altered too extensively.

Jean-René Cazeneuve, a Renaissance lawmaker and member of the committee, also expressed doubts about supporting the proposal, citing new taxes and the projected increase in the deficit.

If the revenue section is rejected, the government’s original budget proposal will proceed to the Senate without the amendments adopted by National Assembly lawmakers.

Other cryptocurrency tax measures still await debate

Although the proposed crypto exit-tax provisions failed, France’s wider cryptocurrency taxation debate remains active.

One outstanding proposal would require taxpayers to declare self-custodied cryptocurrency holdings worth at least €100,000 (approximately $112,000) collectively. The proposed reporting obligation would use the combined value of those holdings at the end of the tax year.

The measure could increase reporting responsibilities for investors who keep their digital assets in private wallets rather than through centralized cryptocurrency exchanges.

Another amendment seeks to exempt certain cryptocurrency payments for goods and services from capital gains taxation when their combined annual value does not exceed €1,000 (approximately $1,120).

These proposals reflect competing approaches to cryptocurrency regulation, including efforts to improve tax transparency while avoiding excessive administrative burdens on smaller users.

Meanwhile, lawmakers approved a separate amendment on October 16 that would tax gains when cryptocurrency assets are converted into fiat-pegged stablecoins. However, approval during the parliamentary process does not automatically make the measure law.

Crypto taxation debate remains open in France

The rejection of the crypto exit-tax amendments represents a setback for lawmakers seeking to extend France’s existing tax framework to unrealized digital asset gains.

However, investors should not interpret the votes as an indication that cryptocurrency holdings are generally exempt from French taxation. Existing tax obligations remain applicable, and other proposed changes could still affect how digital asset owners report and pay taxes.

The outstanding amendments also suggest that France is continuing to examine how private wallets, stablecoin conversions and everyday cryptocurrency payments should be treated under its tax system.

For now, the immediate focus remains on the 2027 budget negotiations and the approaching November 17 deadline. The eventual outcome will determine which proposed revenue measures survive the parliamentary process.

Although the proposed crypto exit-tax measures have been rejected at this stage, France’s broader cryptocurrency tax policy remains unsettled, leaving investors and industry participants watching closely for further legislative developments.