France advances crypto-to-stablecoin tax amendment, weighs wallet and exit tax rules
France's National Assembly backs a narrow crypto tax amendment
France's National Assembly adopted a crypto tax amendment on Friday that could make swaps from crypto into stablecoins taxable events starting in 2027. A stablecoin is a cryptocurrency designed to keep a steady value, usually tied to a traditional currency like the dollar.
The measure, known as Amendment I-3898, passed with 38 votes in favor, 37 against and 25 abstentions. It was first put forward as committee amendment I-CF1826 by French MP Nicolas Sansu and adopted on Oct. 7.
The Assembly is set to vote on the first part of the 2027 Finance Bill on Tuesday, according to its official schedule. It is not clear whether each remaining crypto proposal will be debated or voted on that day.
What the stablecoin amendment would change
If it becomes law, the amendment would tax certain swaps between crypto and stablecoins and change how France calculates crypto capital gains tax.
- Investors who convert Bitcoin or other cryptocurrencies into stablecoins would trigger a tax on the gains, even if they never convert those gains into regular currency.
- The calculation would use the acquisition cost of the sold crypto asset and the weighted average purchasing price.
Loss carryforward proposal rejected
The Assembly rejected a separate proposal on Friday that would have allowed realized crypto losses to be carried forward for 10 years. That vote was 18 in favor, 75 against and 3 abstentions.
Exit tax and self-custodial wallet reporting still under review
Lawmakers are preparing to discuss other crypto-related proposals as part of next year's budget.
- Amendment I-CF1822 would extend France's exit tax regime to unrealized gains when taxpayers whose combined crypto portfolios exceed €800,000 ($895,000) move their residence abroad.
- Amendment I-2701 would require individuals to declare holdings in self-custodial wallets if their total value exceeded €100,000 ($112,000) in the relevant tax year. A self-custodial wallet is one where the user, not a company, controls the private keys.
As of Monday, both proposals remained under consideration for the 2027 Finance Bill.
What is confirmed
The Assembly adopted Amendment I-3898 with 38 votes in favor, 37 against and 25 abstentions, and rejected the 10-year crypto loss carryforward proposal with 18 in favor, 75 against and 3 abstentions. The stablecoin amendment was originally introduced as committee amendment I-CF1826 by MP Nicolas Sansu. The Assembly is scheduled to vote on the first part of the 2027 Finance Bill on Tuesday.
What is still unclear
It is unclear whether each of the remaining crypto-related proposals will be debated or voted on during Tuesday's session. The exit tax and self-custodial wallet reporting amendments were still under consideration as of Monday, meaning neither has been adopted.
Why it matters
Under the proposed stablecoin amendment, moving value between cryptocurrencies without cashing out into a traditional currency could still create a tax obligation in France. The exit tax and wallet reporting proposals would add reporting duties for larger crypto holders and could affect people who plan to leave the country.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.