France Budget Vote Removes Stablecoin Tax and Wallet Disclosure Proposals

Three crypto-related amendments that had been approved, including proposals to tax stablecoin conversions and require disclosures of self-custodied wallets, have been dropped from the budget text sent to the Senate. However, lawmakers could bring them back during the Senate review.

France’s National Assembly rejected the revenue section of the 2027 state budget late Wednesday, meaning the crypto-related amendments were excluded from the version of the bill forwarded to the Senate.

According to the official voting record, the revenue section was rejected at first reading by 458 votes to zero, with two abstentions. This section of the budget deals with government revenues, including tax income.

Following the vote, the government will submit the original version of the budget to the Senate, without the crypto-related amendments that lawmakers had previously approved.

The proposals may still be put forward again in the Senate. To take effect as law, however, they would have to pass the remaining stages of the budget process.

Before the vote, Faustine Fleuret, global head of public affairs at lending protocol Morpho, told Cointelegraph that rejecting the revenue section could “result in the rejection of the entire bill in the National Assembly, including provisions adopted by way of amendments.”

Self-Custody Reporting and Stablecoin Tax Proposals Dropped

Before voting down the revenue section, the Assembly had approved three amendments related to cryptocurrency.

On Oct. 16, lawmakers approved a proposal that would subject gains from conversions between cryptocurrencies and stablecoins to taxation.

On Tuesday, lawmakers passed a separate amendment requiring taxpayers to declare self-custodied crypto assets worth at least 100,000 euros ($112,000). The threshold would be assessed as of Dec. 31 of the relevant tax year.

A third amendment proposed raising penalties for crypto platforms that fail to provide information requested by tax authorities, increasing the fine from 10,000 euros to 50,000 euros.

According to the Senate’s schedule, debate on the finance bill is due to start on Nov. 20. The Senate is then scheduled to examine the articles of the revenue section on Nov. 23.