French Senate Approves Legislative Measure for Automatic Crypto Tax Information Exchange

French Senate Approves Cryptocurrency Tax Information Exchange Bill

The French Senate has taken significant steps forward by approving a new bill aimed at facilitating the automatic exchange of cryptocurrency tax information with international tax authorities. This legislative initiative is currently in the process of review and has already passed its initial reading before being forwarded to the National Assembly as Bill number 3421.

Key Features of the Bill

This bill represents a comprehensive agreement on the exchange of fiscal data related to cryptocurrency transactions and revises existing provisions concerning financial account information. Designed in line with the OECD's Crypto-Asset Reporting Framework (CARF), the measure strives to establish consistent standards for countries to gather and share details regarding cryptocurrency dealings automatically.

Furthermore, France has already set forth crypto reporting requirements as part of the 2025 Finance Act, which aligns with the European Union’s updated Directive on Administrative Cooperation, known as DAC8. Under these new regulations, cryptocurrency service providers are mandated to report customer identities along with transaction data, enabling tax authorities to relay this information to officials in the respective EU countries where the users reside.

Future Tax Policy Discussions

In addition to this new bill, there are ongoing discussions among French lawmakers regarding potential changes to cryptocurrency tax policies in the upcoming 2027 budget. An amendment to the budget, passed on October 16, proposes that profits made from converting assets into specific fiat-pegged stablecoins would be subject to taxation starting January 1, 2027. This proposal has yet to be enacted into law, as deliberations on the budgetary provisions are expected to continue with a vote set for November 3.

Concerns Over Data Security

Concerns have been raised regarding data security associated with tax reporting under DAC8, particularly relating to the sharing of sensitive personal information such as names, addresses, tax identification numbers, and their respective transaction amounts among EU tax authorities.

Faustine Fleuret, the global head of public affairs at lending firm Morpho, warned that creating a centralized repository for cryptocurrency transactions, as the European Commission plans to do by the end of 2026, could present a substantial security risk, effectively establishing a "single point of failure" for confidential data.

Rising Threats to Cryptocurrency Investors

Compounding these concerns, statistics highlight a disturbing trend of physical attacks targeting cryptocurrency investors, widely known as wrench attacks. Reports indicate that in the first half of 2026, France experienced 33 out of 52 verified wrench attacks globally, as documented by blockchain security firm CertiK. A notable incident involved a couple in their late 50s being robbed of approximately $1 million worth of Bitcoin by assailants impersonating police officers.