France’s Senate has approved a bill that would enable the automatic exchange of cryptocurrency tax information with tax authorities in other countries, adding another step to the country’s implementation of international reporting standards for digital assets.
The measure passed its first reading on Tuesday and was sent to the National Assembly as Bill no. 3421. It has not completed the legislative process, so the Senate vote alone does not make the proposed framework law.
Bill would implement OECD crypto reporting framework
The legislation covers an agreement for exchanging tax information linked to crypto-assets, as well as an update to an existing agreement concerning financial-account information. Its crypto provisions are based on the Crypto-Asset Reporting Framework, or CARF, developed by the Organisation for Economic Co-operation and Development.
CARF establishes common rules for participating jurisdictions to collect information about crypto transactions and exchange it automatically with one another. The aim is to give tax authorities access to relevant information when crypto users’ activities involve more than one country.
The Senate’s action comes as France is already putting broader European crypto reporting rules into effect. The country’s 2025 Finance Act introduced reporting obligations based on DAC8, the European Union’s Directive on Administrative Cooperation.
Under those rules, crypto service providers must report customer identities and transaction data to tax authorities. The information is then shared with the authorities in the EU countries where the customers are tax residents. The new bill would address a wider international exchange framework based on CARF.
Privacy and security concerns accompany data sharing
The expansion of crypto tax reporting has raised concerns about how sensitive personal and financial information will be stored and protected. Data covered by the reporting process can include names, addresses, tax identification numbers and transaction volumes.
Faustine Fleuret, global head of public affairs at lending protocol Morpho, told Cointelegraph that sharing this information between European tax authorities creates security risks for crypto users. She argued that a leaked record showing who owns or trades crypto, and the value of those transactions, could create physical safety concerns as well as privacy problems.
The European Commission plans to establish a central repository for crypto reports by the end of 2026. Tax authorities in each EU member state would be able to access information concerning their own tax residents.
That proposed centralization has prompted concern that the repository could become a single point of failure for sensitive transaction data. The issue is particularly significant amid a rise in so-called wrench attacks, a term used for physical assaults or robberies targeting cryptocurrency holders in an attempt to obtain access to their assets.
According to blockchain security company CertiK, France accounted for 33 of the 52 verified wrench attacks worldwide during the first half of 2026. In a March incident, criminals posing as police officers stole approximately $1 million in Bitcoin from a French couple in their late 50s.
France also considers further crypto tax changes
The Senate’s bill is separate from proposed changes being debated as part of France’s 2027 budget. On Oct. 16, the National Assembly adopted an amendment that would make gains from conversions into certain fiat-pegged stablecoins taxable from Jan. 1, 2027.
Stablecoins are crypto-assets designed to maintain a value linked to a reference asset, such as a fiat currency. Under the amendment, profits arising from specified conversions into fiat-pegged stablecoins could therefore fall within the proposed tax treatment. However, the measure is not yet law.
Lawmakers resumed debate on the revenue section of the budget on Tuesday, with a vote scheduled for Nov. 3. The outcome of that process will determine whether the proposed stablecoin tax provision advances further.
Moneyiar market picture
Moneyiar data recorded at 22:39 on Oct. 25, 2026, showed the following prices and changes:
- Ethena (ENA): $0.2092782867, up 8.19% over 24 hours and 12.35% over seven days.
- Polygon (prev. MATIC) (POL): $0.0898082186, up 0.39% over 24 hours and down 0.74% over seven days.
- Compound (COMP): $21.1287447338, down 10.42% over 24 hours and up 0.3% over seven days.
These market figures are Moneyiar data for the stated time and are separate from the French legislative developments.
