French Senate passes crypto tax data-sharing bill at first reading

The French Senate approved a bill that would authorize tax authorities to exchange crypto transaction information automatically with counterparts abroad. The Senate completed the first reading on Tuesday and sent Bill no. 3421 to the National Assembly for consideration. The proposal still requires completion of the legislative process.

The bill covers an agreement governing crypto tax information exchanges. The bill also covers revisions to an existing agreement governing financial account information. The crypto agreement follows the Crypto-Asset Reporting Framework (CARF), which the Organisation for Economic Co-operation and Development (OECD) developed. CARF establishes shared standards for participating jurisdictions to gather crypto transaction information and exchange the information automatically.

France introduced crypto reporting requirements through the 2025 Finance Act to implement DAC8, the crypto reporting amendment to the European Union's Directive on Administrative Cooperation. The rules oblige crypto service providers to submit customer identities and transaction information to tax authorities. Tax authorities then pass the information to authorities in the EU countries where the users reside.

Lawmakers in France are also considering changes to crypto taxation through the 2027 budget. The National Assembly approved an amendment on October 16 that would tax gains from conversions into certain fiat-pegged stablecoins starting January 1, 2027. The amendment has not become law. Lawmakers restarted debate on the revenue portion of the budget on Tuesday. A vote is scheduled for November 3.

Faustine Fleuret, global head of public affairs at lending protocol Morpho, said DAC8 reporting creates data security concerns. Fleuret said EU tax authorities would share personal details such as names, addresses, tax numbers and transaction volumes. Fleuret warned that leaking information about crypto holders' trading activity and amounts would threaten physical safety, not just privacy, in a country where holders have faced attacks.

The European Commission plans to establish a centralized repository for crypto reports by the end of 2026. Each member state's tax authorities would have access to information about that state's tax residents. Fleuret warned that concentrating sensitive crypto transaction information could create a "single point of failure".

Physical attacks on cryptocurrency investors, known as wrench attacks, have increased sharply. Blockchain security company CertiK recorded 33 attacks in France out of 52 verified attacks worldwide during the first half of 2026. Criminals impersonating police officers stole about $1 million in Bitcoin from a couple in France, both in their late 50s, in March.