France postpones 2027 budget vote, crypto exit-tax proposals scrapped

The French National Assembly has delayed the vote on the revenue section of the upcoming budget for the second time amid ongoing political friction. As lawmakers struggled to reach a consensus, contentious plans to introduce a strict crypto exit-tax were officially scrapped from the current draft. The original proposal aimed to heavily penalize individuals moving their digital asset holdings out of the country to more tax-friendly jurisdictions. Critics of the tax argued it would have severely stifled local innovation and driven away prominent Web3 startups and investors. With the removal of these levies, the French crypto ecosystem avoids an immediate regulatory hurdle that threatened its competitive standing in Europe. Market participants are now monitoring how lawmakers will restructure the broader fiscal package as the legislative deadlines approach.