France's Senate adopted a bill that would allow automatic exchange of tax information on cryptocurrency transactions with foreign tax authorities.

On Oct. 29, blockchain media outlet Cointelegraph reported that the bill passed a first reading and was sent to the National Assembly as Bill No. 3421.

The bill addresses both agreements on exchanging cryptocurrency tax information and amendments to existing agreements on exchanging financial account information. The cryptocurrency agreement is based on the Crypto-Asset Reporting Framework (CARF) prepared by the Organisation for Economic Co-operation and Development (OECD). CARF is a framework that has participating countries collect cryptocurrency transaction information under common standards and exchange it automatically.

France introduced cryptocurrency reporting obligations through its 2025 finance law. Reflecting the revised EU Directive on Administrative Cooperation (DAC8), cryptocurrency service providers must report customer identities and transaction data to tax authorities. Tax authorities in each country can share that information with users' country of residence within the EU.

Changes to cryptocurrency taxation are also being discussed in the 2027 budget bill. France's National Assembly on Oct. 16 adopted an amendment to tax capital gains generated when converting into certain fiat-linked stablecoins from Jan. 1, 2027. It has not yet been enacted into law. Discussions on the budget bill's revenue section resumed on Oct. 28, and a vote is scheduled for Nov. 3.

As tax cooperation expands, concerns over data security are also growing. Faustine Fleuret (포스틴 플뢰레), global head of external relations at lending protocol Morpho, pointed out that sensitive information such as names and addresses, tax identification numbers and transaction amounts is shared among EU tax authorities under DAC8. She said centralising data at the EU level could create an opening for large-scale exposure of cryptocurrency transaction information if there is a single security incident.

The European Commission plans to build a central repository to collect cryptocurrency reporting information by the end of 2026. Member state tax authorities will be able to access information related to their own tax residents. While the measure is expected to help block tax evasion, it also heightens the importance of security measures as information becomes more concentrated.

Such concerns also intersect with a string of crimes in France targeting cryptocurrency holders. According to blockchain security firm CertiK, 33 of 52 wrench attacks confirmed worldwide in the first half of 2026 occurred in France.

France's cryptocurrency taxation framework is taking shape through international exchange of tax information and discussions on stablecoin taxation in the 2027 budget bill. In future parliamentary reviews, issues are expected to include not only tax targets and the scope of information sharing but also measures to protect personal information.