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France Crypto Bill Targets Tax Gaps and Strengthens Executive Safety

Paul Midy’s bill proposes fairer crypto tax rules in France. It delays airdrop taxes and extends loss offsets. The measure protects Web3 executives while expanding access to blockchain market testing under the EU pilot regime.

Written By : Yusuf Islam
Reviewed By : Manisha Sharma

French National Assembly member Paul Midy submitted bill 3090, and 91 lawmakers co-signed it to change crypto taxes, improve executive safety, and widen blockchain testing. The proposal covers airdrops, governance tokens, capital losses, small crypto payments, company records, and security expenses. Supporters say existing rules create tax and safety problems for French users and digital asset companies.

Tax Changes Target Unrealized Crypto Assets

The bill would tax airdropped tokens and governance tokens when recipients sell them. Current rules can create a tax charge when users receive tokens, before any sale generates income. Supporters say the change would align crypto assets with traditional securities in France. Therefore, the proposal focuses on the transaction that produces income rather than the receipt of an unrealized asset.

The measure would also let crypto holders carry capital losses forward for 10 years. This period would match existing stock market rules and allow future gains to offset previous losses.

Small Payments and Existing Tax Rates

Another provision would exempt annual crypto payments of up to €1,000, or about $1,139, from taxation. The exemption would reduce reporting duties for small purchases and routine digital asset payments. Still, the bill would not change France’s flat tax rate on crypto gains. That rate rose to 31.4% at the beginning of 2026.

Instead, the proposal changes assessment and declaration procedures. It reportedly emerged from a legislative hackathon organized with ADAN, France’s digital asset industry association.

Executive Safety and Competing Tax Direction

Beyond taxation, the bill would conceal executives’ home addresses from public company registries. It would also require companies to cover security costs when executives face credible threats. Midy introduced a related proposal in June 2025 after kidnapping attempts targeted figures in France’s Web3 industry. Meanwhile, the new bill seeks to open the European Union’s DLT pilot regime to SAS entities.

This change could allow more French companies to test blockchain-based market infrastructure. Which direction will France choose as lawmakers weigh tax reforms against a separate levy on large digital asset holdings?

In October 2025, the National Assembly narrowly approved an unrelated amendment targeting digital asset holdings above €2 million. The measure would impose a 1% annual tax under an ‘unproductive wealth’ category. The separate amendment still requires Senate approval. Midy’s proposal also remains pending as lawmakers prepare for further Senate review and National Assembly debate.

Conclusion

France’s proposed crypto bill would delay taxes on airdrops until sale, extend capital-loss carryforwards to 10 years, exempt small annual payments, and strengthen Web3 executive protection. As lawmakers debate competing tax approaches, users and companies should monitor the bill’s progress through the National Assembly and Senate.

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