France’s Senate has approved a bill that would strengthen the country’s ability to share tax information related to crypto transactions with foreign counterparts. The measure focuses on autom
France’s Senate has approved a bill that would strengthen the country’s ability to share tax information related to crypto transactions with foreign counterparts. The measure focuses on automatic exchange arrangements covering crypto-asset reporting and updates to an existing framework for financial account information.
According to the Senate’s legislative record, the bill cleared its first reading on Tuesday and has been forwarded to the National Assembly for consideration as Bill No. 3421. Lawmakers say the changes are designed to help tax authorities obtain information across borders more efficiently—an approach closely aligned with international standards.
The bill approved in the Senate concerns an agreement on exchanging crypto tax information, as well as an update to an existing agreement covering financial account information. The first-reading vote and subsequent referral place the proposal into the National Assembly’s legislative process.
While the bill is framed as a matter of international administrative cooperation, its practical effect is more direct: it supports the flow of customer and transaction information between jurisdictions, allowing tax authorities to cross-check reporting across member states and beyond.
The crypto portion of the exchange mechanism is based on the Crypto-Asset Reporting Framework (CARF), an OECD initiative intended to establish common standards for collecting and automatically exchanging information on crypto transactions among participating countries.
CARF is designed to reduce fragmentation in crypto reporting by setting standardized expectations for how jurisdictions collect and share information. For investors and service providers, that matters because reporting requirements can drive compliance costs, influence product design, and affect how exchanges and intermediaries handle customer data.
France is not starting from scratch. The country introduced crypto reporting obligations through its 2025 Finance Act, implementing the EU’s administrative cooperation directive amendment known as DAC8. Under that approach, crypto service providers are required to report customer identities and transaction data to tax authorities, which then share relevant information with authorities in EU countries of residence.
In other words, the new Senate-backed bill builds on an already active reporting regime. The difference is that it explicitly strengthens the automatic exchange structure for crypto tax information—supporting broader international reach rather than only domestic collection and intra-EU sharing under DAC8.
Crypto taxation in France is also moving through the budget process. Lawmakers are debating additional changes connected to how certain crypto gains are treated for tax purposes in the 2027 budget.
Earlier coverage cited in the source indicates that the National Assembly adopted an amendment on Oct. 16 that would make gains arising from conversions into certain fiat-pegged stablecoins taxable starting Jan. 1, 2027. However, the measure is described as not yet law.
As debate continues, the National Assembly resumed consideration of the budget’s revenue section on Tuesday, with a vote scheduled for Nov. 3. Market participants typically watch these moments closely because changes to taxable treatment can shift user behavior—especially for users who choose among stablecoins, payment rails, and conversion strategies depending on potential tax consequences.
Beyond France’s legislative progress, the broader EU direction toward more centralized access to crypto tax reports has triggered debate about data security. Tax reporting under DAC8 necessarily involves personal information—such as names, addresses, tax identification numbers, and transaction volumes—shared between EU tax authorities.
Faustine Fleuret, global head of public affairs at lending protocol Morpho, told Cointelegraph that these exchanges create real privacy and safety risks. In a direct warning, Fleuret argued that in a context where crypto holders have been physically targeted, a leaked list detailing who trades what and for how much would be both a privacy issue and—most critically—a safety concern.
The European Commission has been planning to create a central repository for crypto reports by the end of 2026, according to the referenced Commission document. Under that model, each member state’s tax authorities would access information relevant to their tax residents.
Fleuret said centralizing sensitive data could become a “single point of failure,” increasing the consequences if the repository were compromised. For readers, the key issue is not only whether authorities can technically access the data, but how the system manages risk—particularly around unauthorized disclosure or broader misuse.
Those concerns are made more acute by the reported scale of violent crimes targeting crypto investors. The source cites CertiK data indicating that during the first half of 2026, France accounted for 33 of 52 verified wrench attacks worldwide.
One reported incident described in the source involved a French couple in their late 50s who were robbed of about $1 million worth of Bitcoin after criminals posed as police officers. While these accounts do not establish causation between tax data repositories and attacks, they help explain why privacy advocates and industry figures view centralized reporting infrastructure as a high-stakes target.
The editorial takeaway for investors and crypto users is straightforward: as tax reporting becomes more granular and shareable across borders, the value of operational security around customer data rises—both for governments and for compliance-minded service providers.
With France’s Senate bill now in the National Assembly process and EU-level work on a central repository approaching its end-2026 target, the next phase will likely hinge on the final legislative language and the security posture around data access. Investors should watch both the implementation details of automatic exchange and whether the proposed 2027 stablecoin taxation changes progress into enacted law.
This article was originally published as French Senate Passes Bill for Automatic Crypto Tax Data Sharing on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.
