Key Takeaways
- French MPs have backed an amendment proposing a crypto exit tax for portfolios exceeding €800,000.
- Undeclared self-custody wallets could face fines of up to €10,000 under the proposed measures.
- The measures must undergo additional parliamentary votes before final enactment.
According to Euronews, French members of parliament have advanced a legislative amendment targeting wealthy cryptocurrency investors who choose to relocate abroad. The proposed measures would apply an exit tax on paper gains for portfolios exceeding €800,000, alongside administrative penalties of up to €10,000 for individuals who fail to declare self-custody digital wallets. While these proposals secured backing in committee last week, they remain subject to further parliamentary votes before potentially passing into law. This domestic legislative push aligns with a broader European regulatory trend towards tighter oversight of digital assets, running parallel to the implementation of the EU's Markets in Crypto-Assets (MiCA) regulation and the Eighth Directive on Administrative Cooperation (DAC8). As member states increasingly seek to curb tax evasion and ensure cross-border transparency, national tax authorities are pivoting towards greater scrutiny of decentralized finance and self-hosted wallets, which have historically presented enforcement challenges. For citizens, businesses, and policymakers, the outcome of this legislative process will signal how aggressively EU member states intend to tax unrealized digital wealth compared to traditional asset classes. A finalized exit tax could influence the relocation strategies of high-net-worth crypto entrepreneurs within the single market. Further legislative debates and decisive votes on the budget amendments are scheduled in the coming weeks.
Source: Euronews. Read the original report ↗
Frequently Asked Questions
Who would be affected by the proposed French crypto exit tax?
The proposed tax targets wealthy cryptocurrency investors with paper gains exceeding €800,000 who decide to leave France.
Are these crypto tax measures currently final law in France?
No. The measures were backed in committee but still require further votes by lawmakers before becoming law.