France advances stablecoin tax, eyes self-custodial wallets and exit tax proposals

Update, Oct. 20, 7:48 am UTC: This article has been updated to include a delay in the National Assembly’s vote on the revenue section of the 2027 state budget.

Update, Oct. 20, 12:56 pm UTC: This article has been updated to clarify France’s existing tax rate on individuals’ cryptocurrency capital gains.

French lawmakers narrowly approved a new crypto tax amendment on Friday that could make crypto-to-stablecoin swaps taxable events starting in 2027.

France’s National Assembly adopted Amendment I-3898 on Friday, with 38 votes in favor, 37 against and 25 abstentions. The measure was initially introduced as committee amendment I-CF1826 by French MP Nicolas Sansu and adopted on Oct. 7.

Under the proposal, investors converting their Bitcoin (BTC) or other cryptocurrencies into stablecoins would trigger a tax on the gains, even without converting gains into fiat.

France taxes individuals’ capital gains from cryptocurrency at a flat rate of 31.4%. The amendment would extend that treatment to gains realized through crypto-to-stablecoin conversions.

On Monday, the Assembly postponed its vote on the first part of the 2027 Finance Bill, which had been scheduled for Tuesday. The vote covers the budget’s revenue section, including the stablecoin tax amendment. The measure must survive the remaining budget process before becoming law. Other crypto-related proposals remain under consideration.

French National Assembly advances Amendment I-3898 on crypto-to-stablecoin tax swaps. Source: assemblee-nationale.fr

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French lawmakers to discuss crypto exit tax, self-custodial wallet reporting measures

Separately, the Assembly rejected a proposal on Friday to carry forward realized crypto losses for 10 years, with 18 votes in favor, 75 against and 3 abstentions.

French lawmakers are preparing to discuss other crypto-related proposals as part of next year’s budget. Amendment I-CF1822 proposes to extend France’s exit tax regime to cover unrealized gains when taxpayers with aggregate crypto portfolio values exceeding €800,000 ($895,000) transfer their residences abroad. 

Lawmakers are also weighing amendment I-2701, which would require individuals to declare the holdings of the self-custodial wallets if their total value exceeded €100,000 ($112,000) in the relevant tax year.

As of Monday, both proposals remain under consideration for the 2027 Finance Bill.

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