French Lawmakers Propose Investor-Friendly Crypto Tax

TLDR

French lawmakers have tabled a bill to make day?to?day crypto taxation in France simpler and friendlier for regular investors.

1. The proposal would tax airdrops and governance tokens only when sold, allow 10-year loss carryforwards, and exempt small crypto payments up to 1,000.
2. The flat tax rate on crypto gains (31.4%) and a separate proposed wealth tax on large holdings would stay in place, so the overall regime remains mixed.
3. Nothing is law yet; the bill must still pass the French Parliament, and its fate will shape whether France becomes a more attractive crypto hub for retail and startups.

Deep Dive

1. Key Tax Changes Proposed

Member of Parliament Paul Midy, backed by 91 co-signers, has introduced bill 3090 to fix what he calls unfair and unclear treatment of digital assets in France.

According to the bill, there are three headline tax reforms for crypto investors:

1. Airdropped and governance tokens would be taxed only when they are sold, not when received, aligning them with how many traditional securities are treated, as outlined in the bill summary.
2. Capital losses on crypto could be carried forward for 10 years, matching stock market rules and making it easier to offset future gains.
3. Crypto payments up to 1,000 per year would be exempt from taxation, cutting reporting burden on small everyday transactions.

Crucially, the bill does not cut the overall flat tax on crypto gains, which was raised to 31.4% in 2026, but it aims to make how and when that tax is applied more rational and investor-friendly.

2. Broader Policy Context In France

Midys proposal sits inside a broader, sometimes contradictory, French policy landscape on crypto.

The same article notes an October 2025 amendment passed by the National Assembly to tax digital asset holdings above 2 million as unproductive wealth at 1% annually, a measure criticized by industry as punitive and still awaiting Senate approval.

Midys bill also includes non-tax measures: it would hide home addresses of executives of blockchain companies from public registries and require companies to fund extra security when there are credible threats, building on earlier legislation following kidnapping attempts against Web3 founders.

The bill would additionally open the EUs Digital Ledger Technology (DLT) pilot regime to more French corporate structures (SAS), broadening access to regulatory sandboxes for market infrastructure testing.

3. What To Watch Next For Crypto Users

As of late July 2026, both Midys investor-friendly bill and the separate wealth tax amendment are pending and have not yet become law in France.

For French retail users and startups, the practical impact will depend on:

1. Whether the National Assembly and Senate adopt the airdrop and loss-carryforward changes without dilution.
2. Whether the 1% annual wealth tax on large digital-asset portfolios is approved, which could push high-net-worth holders to restructure or relocate.
3. How Frances regime ultimately interacts with EU-wide rules like MiCA and the DLT pilot, affecting where French platforms launch products and how they report.

Confidence: moderate because the proposals are clearly documented, but their final form and timing depend on political negotiations.

Conclusion

France is signaling that it wants clearer, more investor-friendly rules for everyday crypto users while still reserving the right to tax large holdings and tighten oversight. If Midys bill passes largely intact, French residents could see simpler treatment of airdrops, better use of losses, and fewer tax headaches on small transactions, even though headline tax rates and possible wealth taxes remain relatively high. For crypto participants in or serving France, the legislative outcome will help determine whether the country becomes a more welcoming base or a place where sophisticated investors keep only limited exposure.