French lawmakers narrowly approved a new crypto tax amendment on Friday that could make crypto-to-stablecoin swaps taxable events starting in 2027. The National Assembly adopted Amendment I-3898 with 38 votes in favor, 37 against, and 25 abstentions. Initially introduced as committee amendment I-CF1826 by MP Nicolas Sansu and adopted on Oct. 7, the measure now moves toward a vote on the first part of the 2027 Finance Bill scheduled for Tuesday.
If enacted, the amendment would tax certain crypto-to-stablecoin conversions, treating them as capital gains events even without fiat conversion. The calculation method involves using the acquisition cost of the sold asset and the weighted average purchasing price. Separately, the Assembly rejected a proposal to carry forward realized crypto losses for ten years, voting 18 in favor, 75 against, and 3 abstentions.
Other crypto-related proposals remain under consideration for the 2027 budget. Amendment I-CF1822 proposes extending France’s exit tax regime to unrealized gains for taxpayers moving abroad with aggregate crypto portfolios exceeding €800,000 ($895,000). Additionally, amendment I-2701 would require individuals to declare self-custodial wallet holdings if their total value exceeds €100,000 ($112,000) in the relevant tax year.
The narrow passage of Amendment I-3898 signals a tightening regulatory stance on cryptocurrency transactions within France, specifically targeting the liquidity bridge between volatile assets and stablecoins. By classifying stablecoin swaps as taxable events, legislators aim to close potential loopholes where investors might otherwise defer capital gains taxes by holding digital dollars rather than converting back to fiat currency. This shift fundamentally alters the tax treatment of portfolio rebalancing strategies for French crypto holders.
The simultaneous rejection of loss carry-forward provisions alongside the advancement of exit tax and self-custody reporting amendments suggests a broader effort to enhance fiscal visibility and prevent capital flight. While the stablecoin tax is currently at an early legislative stage, its inclusion in the upcoming Finance Bill vote indicates serious intent to integrate crypto assets more rigorously into the national tax framework. Investors should monitor the finalization of these measures, as they may significantly impact net returns and compliance obligations for both retail and institutional participants in the French market.
