France's National Assembly on Wednesday rejected the revenue section of its 2027 state budget, a vote that strips the chamber's cryptocurrency tax and reporting amendments from the legislation now heading to the Senate.

The Assembly's official voting record shows 458 lawmakers against the section and none in favor. Because the revenue section was voted down, the amendments on cryptocurrency taxation and reporting that the lower chamber had attached to it fall away with the text. The bill's examination now passes to the Senate, France's upper house. In practical terms, the rejection leaves France's existing cryptocurrency tax rules unchanged for now.

What Happens Next in the Budget Process

Under France's bicameral system, a draft finance bill is tabled by the government each autumn and is examined first by the National Assembly, which has 577 seats, before transmission to the Senate, whose 348 members may amend the text. If the two chambers disagree, the government can convene a joint committee, and the constitutional mechanism known as Article 49.3 allows a budget text to be adopted without a vote — a procedure that in December 2024 triggered a successful no-confidence motion against Prime Minister Michel Barnier's government after it was used on budget legislation. Parliament has 70 days under Article 47 of the Constitution to complete its examination of the budget; if no decision is reached within that window, the government can bring the relevant provisions into force by ordinance. The Senate's reading is therefore the next point in the process at which cryptocurrency-related provisions could be tabled again, as upper-house members may put forward amendments of their own.

Crypto Tax Context in France and the EU

France currently taxes capital gains on digital assets held by individuals under a flat 30% levy, the so-called "flat tax" (prélèvement forfaitaire unique) combining income tax and social contributions, a treatment applied to crypto gains since 2019. At the European level, the Markets in Crypto-Assets regulation (MiCA) has applied in full since December 30, 2024, creating a common licensing framework for crypto-asset service providers, while the DAC8 directive extends tax reporting and information-exchange obligations to crypto-asset transactions, with reporting applying from 2026. Because MiCA and DAC8 operate at the EU level, those licensing and reporting obligations continue to apply independently of how the French budget debate concludes.

The fate of the cryptocurrency tax and reporting provisions dropped by Wednesday's vote now rests with the Senate as the 2027 budget continues its parliamentary passage.

This content was first published on COINOTAG: https://en.coinotag.com/france-assembly-rejects-2027-budget-revenue-crypto-tax-amendments