French legislators narrowly endorsed a novel cryptocurrency tax amendment on Friday that could transform digital asset-to-stablecoin exchanges into taxable incidents beginning in 2027.
The National Assembly of France adopted Amendment I-3898 on Friday, securing 38 affirmative votes, 37 negative votes, and 25 abstentions. This provision was originally brought forward as committee amendment I-CF1826 by French parliament member Nicolas Sansu and passed on October 7.
The Assembly is set to vote regarding the initial section of the 2027 Finance Bill on Tuesday, based on its official schedule. Additional cryptocurrency-focused measures stay under review, though it remains uncertain if every single one will be debated or voted upon during that session.
Should it become law, the stablecoin amendment would impose taxes on specific digital asset-to-stablecoin swaps and alter how the nation computes capital gains taxes on cryptocurrencies.
French National Assembly advances Amendment I-3898 on crypto-to-stablecoin tax swaps. Source: assemblee-nationale.fr
Under this initiative, investors converting Bitcoin (BTC) or alternative digital currencies into stablecoins would trigger taxation on their profits, even without cashing out those gains into fiat currency. The computation would rely on the original acquisition cost of the disposed crypto asset alongside the weighted average purchase price.
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French lawmakers to discuss crypto exit tax, self-custodial wallet reporting measures
In a separate decision, the Assembly turned down a proposal on Friday to carry forward realized cryptocurrency losses across a 10-year span, recording 18 votes in favor, 75 against, and 3 abstentions.
French policymakers are gearing up to debate further crypto-linked provisions as part of the upcoming budget. Amendment I-CF1822 suggests broadening France’s exit tax framework to encompass unrealized profits whenever taxpayers possessing combined cryptocurrency portfolios exceeding €800,000 ($895,000) relocate their residency abroad.
Furthermore, officials are evaluating amendment I-2701, which would mandate individuals to report the contents of their self-custodial wallets if their aggregate worth surpassed €100,000 ($112,000) throughout the applicable tax year.
As of Monday, both measures continue to be evaluated for inclusion in the 2027 Finance Bill.
Magazine: How the EU’s crypto tax rules are expected to work for users and platforms
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