Crypto Taxation in France: The 6 Measures of the Midy Bill Explained
Little streams make big rivers. A weekend hackathon, a law of the Republic. Six measures, one proposal, and a good decade of fiscal and security frustrations finally put on paper. Proposal No. 3090, submitted on July 23 to the National Assembly by Deputy Paul Midy, aims to align French crypto taxation with that of stocks, protect threatened leaders, and open a new funding channel for young companies. What most summaries reduce to three lines actually consists of six distinct articles, each with its own logic. It is worth detailing them correctly, with the official text to support. Key points of this article:
- An unprecedented legislative hackathon at the National Assembly resulted in a bill aimed at aligning cryptocurrency taxation with that of French stocks.
- The legislative proposal addresses the taxation of governance tokens, the compensation of capital losses, and provides increased protection for threatened leaders, reflecting alarming security concerns.
A hackathon at the Assembly, not a ministerial cabinet {#h-a-hackathon-at-the-assembly-not-a-ministerial-cabinet}
Proposal No. 3090 was born from an unusual format: a legislative hackathon organized at the National Assembly by Adan, in the presence of Gabriel Attal and Paul Midy. The text was submitted the next day, already co-signed by 91 deputies.
A hackathon, a format usually reserved for developers who code a prototype in 48 hours, applied to drafting a bill. The method has a concrete effect on the result. The six measures address the irritants raised by industry professionals, rather than an abstract vision of crypto taxation imagined from a Parisian office.
A few weeks ago, I participated in a legislative hackathon at the National Assembly, organized by @adan_asso with @GabrielAttal and @midy_paul
Yesterday, following these discussions, a crypto bill was brought forward by Paul Midy and co-signed by 91 deputies... pic.twitter.com/vhDgNs3crO
--- Hasheur (@PowerHasheur) July 24, 2026
Governance tokens, taxed upon resale and not before {#h-governance-tokens-taxed-upon-resale-and-not-before}
The first measure, the most technical: governance tokens, these tokens that grant a voting right on the functioning of a computer protocol. The text creates a new article in the general tax code for tokens awarded as a reward for documented contributions to the development, security, or governance of a protocol. Contrary to a quick reading, it does not exempt all airdrops distributed to the general public.
The measure specifically targets contributor tokens, developers, or maintainers, taxed only at the time of their actual resale and not upon receipt. Simple on paper. It would apply retroactively to allocations since January 1, 2024, which also resolves several years of gray area for open-source contributors already compensated in tokens.
Capital losses and current payments, the minimum service of common sense {#h-capital-losses-and-current-payments-the-minimum-service-of-common-sense}
Second Initiative: Capital Losses
A crypto investor who loses money over a year cannot currently offset this loss against future gains. In contrast, a shareholder can do so for ten years. The proposal mirrors the existing regime for securities, a measure that costs the state nothing in cruising mode since it smooths out an already due taxation over time.
Third Initiative: Exemption for Crypto Payments
There is a proposed exemption for payments in crypto assets up to 1000 euros per year for the purchase of goods or services. This aims to encourage the use of cryptocurrencies in the real economy rather than merely as a store of value, a goal that the PACTE law of 2019 failed to achieve despite the creation of the PSAN status (service provider on digital assets).
Protection for Executives
The law addresses a security reality. The explanatory memorandum relies on a figure that justifies two entire articles. France has become the leading country in Europe for physical violence against crypto asset holders, with over forty kidnappings, attempted kidnappings, or sequestrations reported since the beginning of 2026, which amounts to about one case every two and a half days.
In light of this, Article 4 mandates the masking of personal addresses of executives in digital registers, except for the postal code, under penalty of a 45,000 euro fine for operators who do not comply. Article 5 touches on a more nuanced legal point. It excludes from the scope of misappropriation of corporate assets the coverage, by the company, of personal protection expenses for a threatened executive, as well as for their spouse, civil partner, cohabitant, ascendants, descendants, or siblings, under four cumulative conditions: a proven threat related to the function, a proportionate expense, prior authorization from the competent social body, and documentation retained for control. This aims to eliminate legal ambiguity that deterred some companies from financing the security of their executives for fear of exposing themselves to lawsuits.
The DLT Pilot Regime
Lastly, and perhaps the least commented part of the text. Article 6 opens access to the European pilot regime applicable to market infrastructures based on distributed ledger technology (DLT) for simplified joint-stock companies (SAS), as provided by European regulation 2022/858. In practice, an SAS could issue financial securities exclusively via a DLT infrastructure, a format currently reserved for other corporate forms.
The legislator has a simple goal: to facilitate financing for innovative small and medium-sized enterprises. The SAS is the most common legal status among French startups, whether crypto-related or not, which explains the choice of this corporate form over others. A technical measure, almost invisible in the summaries of the text, but which could have significant implications for a crypto SAS in fundraising.
The Vote, Not the Text, Will Be the Real Test
The vote, not the text, will be the true test.
The calendar also counts. A text submitted at the end of July will not be discussed until September, but this delay allows time for the committees to examine it and for the co-signers to multiply before the budget agenda for the new session, with 2027 at the forefront, takes center stage. The closest precedent gives an idea of the path that remains to be traveled. In April, a similar article aimed at taxing non-custodial wallets beyond 5000 euros was rejected in a joint committee, thanks to overt lobbying from the sector. The full text of proposal n°3090 is available on the National Assembly's website, along with the complete explanatory memorandum and the list of 91 signatories.
The French crypto ecosystem is no longer just reacting to texts that threaten it. It is now writing its own, in a room of the National Assembly rather than in a law firm. The next steps will take place in the finance committee, directly following the debates on the taxation of wallets that occupied the sector in April, the last time a crypto text came so close to a vote before being rejected.
This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.
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