French Senate approves crypto tracking bill

The French Senate has passed a bill that would enable tax authorities to track cryptocurrency holders and their international transactions. The measure, approved on October 27, is part of an effort to improve international tax cooperation and prevent fraud.

Bill aims for global tax cooperation

The bill authorizes a multilateral agreement among 56 tax administrations to exchange information about cryptocurrency transactions. It was introduced by the government in July and is now being sent to the National Assembly for approval.

Crypto exchanges required to share data

Under the bill, cryptocurrency exchanges like Binance and Coinbase would be required to provide detailed user information, including tax residency, and transaction details to tax authorities. This data would cover transactions since January 1, 2026.

Cold wallets excluded from tracking

The measure does not apply to "cold" wallets like Ledger, which allow users to store cryptocurrency offline. These wallets remain outside the scope of the new tracking requirements.

Agreement expands on European directive

The agreement between 56 countries goes beyond the European DAC 8 directive, which requires automatic information sharing on crypto transactions within the EU. The new system will allow French authorities to track both foreign crypto accounts and EU-based transactions from 2026 onward.

Experts warn of privacy and security risks

Some experts are concerned that the increased monitoring of cryptocurrency users could lead to privacy issues and potential risks, especially as attacks on crypto holders have been increasing both online and in the physical world.