French Parliament Passes Narrow Crypto Tax Amendment Targeting Stablecoin Conversions
On Friday, French lawmakers narrowly approved an amendment to the crypto tax code that could categorize exchanges from cryptocurrencies to stablecoins as taxable events beginning in 2027.
New Crypto Tax on Exchanges Alongside Additional Reforms
The French National Assembly adopted Amendment I-3898 by a slim margin: 38 votes in favor, 37 against, and 25 abstentions. Originally introduced as committee proposal I-CF1826 by MP Nicolas Sansu, the amendment was first accepted on October 7.
According to the official schedule, the Assembly is set to vote on the first portion of the 2027 Finance Bill next Tuesday. Although other crypto-related measures are still under review, it remains uncertain if they will be debated or approved during that session.
If the amendment passes into law, it will levy taxes on certain transactions involving cryptocurrency converted into stablecoins and adjust how capital gains from crypto assets are calculated in France.
The National Assembly is moving forward with Amendment I-3898, focusing on taxation of crypto-to-stablecoin exchanges. (Source: assemblee-nationale.fr)
Under this proposal, investors who convert Bitcoin (BTC) or other cryptocurrencies into stablecoins will be required to pay capital gains tax, even if they do not cash out into traditional currency. The tax calculation will be based on the original purchase price of the cryptocurrency sold and the weighted average acquisition price.
Lawmakers to Debate Crypto Exit Tax Expansion and Self-Custodial Wallet Reporting
In a separate vote on Friday, the Assembly rejected a proposal to allow crypto investors to carry forward realized losses for up to ten years; the motion received 18 votes in favor against 75 opposing, with 3 abstentions.
French legislators are also preparing to review additional crypto-related measures in next year’s budget. Among them is Amendment I-CF1822, which aims to broaden the crypto exit tax to cover unrealized gains when taxpayers owning crypto portfolios worth more than €800,000 (approximately $895,000) relocate abroad.
Another amendment under consideration, I-2701, would mandate individuals to declare ownership of self-custodial crypto wallets if their holdings exceed €100,000 (about $112,000) within the relevant tax year.
As of Monday, both of these proposals remain under discussion for potential inclusion in the 2027 Finance Bill.
Why it matters
These legislative moves represent France’s effort to tighten crypto tax regulations, ensuring that stablecoin conversions and large crypto holdings are properly accounted for and taxed within the national framework.
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