France Advances Tax on Crypto-to-Stablecoin Swaps, Targets 2027 Implementation

France’s National Assembly has passed a bill that would tax transactions swapping cryptocurrencies for stablecoins. Lawmakers are also discussing mandatory reporting for self-custody wallets and an exit tax.

Cointelegraph reported on October 19 that the National Assembly approved the crypto tax amendment, known as I-3898, by 38 votes to 37, with 25 abstentions. The amendment was introduced by lawmaker Nicolas Sansu and cleared committee review on October 7.

If enacted, the measure would make swaps of cryptocurrencies such as Bitcoin into stablecoins taxable even if the assets are not converted into fiat currency. The tax base would be calculated based on the acquisition cost of the sold crypto and its weighted-average purchase price. The target implementation date is 2027.

The National Assembly on the same day rejected a separate amendment that would have allowed realized crypto losses to be carried forward for deduction over 10 years. That proposal was voted down 18 to 75.

Two additional amendments are also due to be discussed during deliberations on the 2027 budget bill. Amendment I-CF1822 would impose an exit tax on unrealized gains if taxpayers with crypto portfolios exceeding 800,000 euros ($895,000) move their tax residence abroad. Amendment I-2701 would require taxpayers to report self-custody wallet holdings if the balance exceeds 100,000 euros ($112,000) during the relevant tax year.

The National Assembly is scheduled to vote on the first part of the 2027 budget bill later this week. The timetable for reviewing the two amendments has not yet been set.