France Advances Tax On Crypto-to-Stablecoin Swaps

France’s National Assembly narrowly approved a proposal that could make certain crypto-to-stablecoin swaps taxable from 2027. Lawmakers are also considering reporting rules for self-custodial wallets and an exit tax on unrealized crypto gains.

The Assembly adopted Amendment I-3898 on Oct. 16 by 38 votes to 37, with 25 abstentions. Nicolas Sansu, a member of the Assembly, initially introduced the measure as committee proposal I-CF1826. The committee adopted it on Oct. 7.

If included in the 2027 Finance Bill, the amendment would treat conversions from Bitcoin or other cryptocurrencies into stablecoins as taxable events. Investors could owe tax on gains even if they did not convert the assets into euros or another fiat currency.

The proposed calculation would use the acquisition cost of the crypto asset sold and its weighted average purchase price.

The Assembly is scheduled to vote on the first part of the 2027 Finance Bill on Oct. 20, according to its official schedule. The status of individual crypto-related proposals may differ, and it is not certain that each measure will be debated or voted on that day.

Lawmakers rejected a separate proposal on Oct. 16 that would have allowed taxpayers to carry forward realized crypto losses for 10 years. The proposal received 18 votes in favor, 75 against and three abstentions.

Other crypto-related measures remain under consideration. Amendment I-CF1822 would extend France’s exit tax to unrealized crypto gains for taxpayers with crypto portfolios worth more than €800,000 ($895,000) who move their tax residence abroad.

Amendment I-2701 would require individuals to report assets held in self-custodial wallets if their total value exceeded €100,000 ($112,000) during the relevant tax year. Both proposals remained under consideration for the 2027 Finance Bill as of Oct. 19.