French Senate Backs Automatic Crypto Tax Data Exchange

The French Senate voted to authorize the automatic exchange of cryptocurrency tax information with foreign tax authorities. Approved at first reading on Tuesday, the measure was transmitted to the National Assembly as Bill No. 3421. It covers a new crypto-information exchange agreement and an update to an existing framework for sharing financial-account data.

The proposal is based on the OECD’s Crypto-Asset Reporting Framework, which establishes common standards for collecting and automatically exchanging information on crypto transactions. France began implementing the EU’s DAC8 reporting requirements through its 2025 Finance Act. Crypto service providers must report customer identities and transaction data to French tax authorities, which can share the information with authorities in users’ countries of residence.

French lawmakers are also considering changes to the country’s 2027 budget. An amendment adopted by the National Assembly on Oct. 16 would make gains from conversions into certain fiat-pegged stablecoins taxable starting Jan. 1, 2027. The proposal is not yet law; the Senate resumed debate over the budget’s revenue section on Tuesday, with a vote scheduled for Nov. 3.

The expansion of crypto tax reporting has raised privacy and cybersecurity concerns because shared records can include names, addresses, tax numbers and transaction volumes. Faustine Fleuret, global head of public affairs at lending protocol Morpho, warned that leaked information could expose crypto users to physical attacks. The European Commission also plans to establish a central repository for crypto reports by the end of 2026, which Fleuret described as a potential single point of failure for sensitive transaction data.