France's National Assembly Finance Committee recently approved amendments that would treat stablecoin swaps as taxable events and extend an exit tax to crypto holdings. However, the committee subsequently rejected the overall budget's revenue section on October 9 by a vote of 31 to 3, meaning these crypto-specific proposals will not automatically advance to the full Assembly debate, according to Decrypt.
Key takeaways
- A French Finance Committee amendment would tax swaps of crypto into MiCA-regulated stablecoins as sales from January 1, 2027.
- Another proposed amendment would extend France's exit tax to crypto holdings exceeding €800,000 for individuals moving abroad.
- A third approved amendment would allow investors to carry crypto losses forward for 10 years to offset future gains.
- The committee rejected the budget's revenue section, meaning these crypto amendments must be re-tabled for full Assembly debate.
- The full Assembly floor debate on the budget's revenue section is scheduled to begin on October 13, with a vote on October 20.
Proposed Stablecoin Tax and Exit Tax
The French Finance Committee adopted an amendment that would classify swaps of cryptocurrencies into MiCA-regulated stablecoins as taxable sales, effective January 1, 2027. This change aims to close a perceived loophole where gains from such swaps are not currently taxed until converted to fiat currency or spent. The amendment would apply to electronic money tokens defined under MiCA, the European Union's crypto regulatory framework, which includes most stablecoins pegged to a single currency.
Additionally, a second amendment proposed extending France's exit tax to crypto assets. This tax applies to unrealized gains when a taxpayer moves their tax residence abroad. It would affect households with combined crypto holdings exceeding €800,000, provided the taxpayer was a French resident for at least six of the previous 10 years, for moves from January 1, 2027. Swaps between cryptocurrencies without a cash component would not be considered sales for exit-tax purposes.
Loss Carry-Forward Amendment Approved
Alongside the proposed new taxes, the committee also approved an amendment that would benefit crypto investors by allowing them to carry forward crypto losses for 10 years. This provision would enable investors to offset future crypto gains with past losses, aligning crypto tax treatment with that of traditional stocks. Currently, unused crypto losses cannot be carried over in France.
This amendment, filed by Daniel Labaronne, offers a potential silver lining for investors, providing a mechanism to manage their tax liabilities more effectively in volatile markets. The ability to carry forward losses is a common feature in many tax systems for traditional assets, and its extension to crypto could be seen as a step towards greater regulatory maturity.
Budget Rejection and Legislative Path Forward
Despite the committee's approval of these amendments, their immediate impact is uncertain. The committee subsequently rejected the entire revenue section of the budget on October 9 by a significant margin of 31 votes to 3. This means that the full National Assembly will begin its debate on the budget from the government's original text, which does not include these crypto-specific amendments.
For these proposals to become law, their proponents would need to re-table them during the floor debate, which is scheduled to commence on October 13. The legislative process is complex, and even if re-introduced, these measures would still need to pass through further stages before becoming law. The final vote on the budget's revenue section is set for October 20.
What This Means for Holders
For Bitcoin and crypto holders, these proposed French tax changes highlight a global trend towards increased regulatory scrutiny and taxation of digital assets. While these specific amendments are not yet law, they indicate potential future directions for tax policy in major economies. The stablecoin tax, if enacted, could alter how investors manage their portfolios, potentially encouraging them to hold assets longer or consider the tax implications of every swap.
The exit tax proposal underscores the growing attention to the mobility of digital assets and aims to ensure that wealthy individuals do not avoid tax obligations by moving abroad. Conversely, the loss carry-forward provision could offer a valuable tool for managing tax liabilities, making the crypto investment landscape more predictable for long-term holders. Holders should monitor legislative developments closely, as similar proposals could emerge in other jurisdictions.
For more on how regulatory changes affect the market, see our analysis on Bank of America Greenlighting Spot Bitcoin ETFs.
Broader Regulatory Context and Future Outlook
These French proposals are part of a broader European trend towards regulating crypto assets, notably through MiCA. The European Union's Markets in Crypto-Assets (MiCA) regulation provides a comprehensive framework for crypto assets, including stablecoins. Coinbase, for example, announced in October 2024 its intention to delist stablecoins that do not comply with MiCA for European customers by December 30, directing users towards compliant options like USDC and EURC.
The debate around taxing digital assets is ongoing. In late October 2025, the Assembly adopted an amendment in its first reading for a 1% annual levy on "unproductive" wealth above €2 million, which included digital assets alongside gold and yachts. Attorney Burçak Ünsal noted to Decrypt that taxing early token holders in this manner could be "economically unjust." These discussions underscore the evolving nature of crypto taxation and the need for clear, consistent regulations.