France’s New Digital Asset Bill: Tax Reforms and Executive Safety Measures Unveiled

Crypto Regulation News: Executive Safety and DLT Provisions

Paris, France — In a significant move for the digital asset landscape, French National Assembly member Paul Midy has introduced a comprehensive digital-asset bill, co-signed by 91 lawmakers. This initiative aims to clarify tax regulations that many believe currently disadvantage French digital asset users and companies. The bill, numbered 3090, emerged from a legislative hackathon organized in collaboration with ADAN (Association pour le Développement des Actifs Numériques), France’s leading digital asset industry association.

What France’s Bill Proposes

The proposed legislation seeks to align the taxation of digital assets with that of traditional securities. The core principle is simple: tax the event that generates income rather than taxing the mere receipt of unrealized assets. Key measures include:

1. Taxation of Airdropped Tokens: Tokens received through airdrops and governance tokens will only be taxed upon sale, rather than at the time of receipt. This change aims to alleviate the burden on recipients who may not have realized any gains yet.

2. Carryforward of Crypto Capital Losses: Investors will be allowed to carry forward crypto capital losses for up to 10 years, similar to existing provisions for stock market losses. This will enable them to offset future gains against past losses over a more extended period.

3. Exemption for Small Transactions: Crypto payments up to €1,000 (approximately $1,139) per year will be exempt from taxation, simplifying the reporting process for everyday transactions.

While these measures aim to modernize the tax framework, they do not alter France’s existing flat tax rate on crypto gains, which is set to rise to 31.4% in 2026.

Addressing Executive Safety

In addition to tax reforms, the bill addresses a pressing concern: the physical safety of executives in the blockchain sector. It proposes measures to conceal executives’ home addresses from public registries and mandates that companies cover security costs for those facing credible threats. This initiative follows a troubling trend of kidnapping attempts targeting figures in France’s Web3 industry, prompting Midy to introduce related legislation in June 2025.

Expanding DLT Pilot Regime

The proposal also seeks to expand the EU’s Digital Ledger Technology (DLT) pilot regime to include SAS entities, a common corporate structure in France. This change could broaden the scope of French companies eligible to test blockchain-based market infrastructure under the EU’s existing framework.

The Broader Tax Landscape

This bill arrives at a pivotal moment in France’s crypto tax landscape. In October 2025, the National Assembly passed a controversial amendment to tax large digital asset holdings exceeding €2 million as “unproductive wealth” at a 1% annual rate. This measure, which still requires Senate approval, has faced criticism for being economically punitive.

In contrast, Midy’s bill is framed as a more investor-friendly approach, aligning tax treatment with traditional securities rather than imposing new burdens. The future of both proposals remains uncertain as they navigate the legislative process, raising questions about their coexistence in France’s evolving crypto tax framework.

Conclusion

Today’s developments highlight France’s dual approach to digital assets: a wealth tax proposal that could deter investment and a 91-signature bill aimed at modernizing tax treatment and enhancing executive safety. As both measures await further legislative scrutiny, the outcome will significantly shape the future of crypto regulation in France.

Disclaimer: This article is for informational purposes only and does not constitute financial, legal, or taxation advice. All legislative details are based on publicly available reporting on bill number 3090 as of July 25, 2026, and are subject to change as the bill progresses through France’s legislative process. Always consult official French government sources or a qualified tax professional for guidance on taxation.