French lawmakers have taken a step toward making crypto-to-stablecoin swaps taxable events in 2027, narrowly approving Amendment I-3898 in the National Assembly. The amendment was adopted with 38 votes in favor, 37 against, and 25 abstentions on Friday.
Key amendment targets crypto swaps
Amendment I-3898, initially introduced by French Member of Parliament Nicolas Sansu as committee amendment I-CF1826 and adopted on October 7, seeks to modify France’s capital gains tax regime for digital assets. If given final approval, the rules will mean that converting Bitcoin (BTC) or other cryptocurrencies to stablecoins will be treated as a taxable event, even if investors do not cash out into fiat currencies.
The new calculation method would use the original acquisition cost and the weighted average purchase price to determine the taxable gain. This marks a shift from France’s current approach, where tax is typically triggered only when crypto assets are converted into fiat money.
Under the proposal, swapping cryptocurrencies like Bitcoin for stablecoins would result in a tax obligation at the moment of the swap, regardless of subsequent conversion to euros or other fiat currencies.
The measure forms part of ongoing debates over the 2027 Finance Bill, with the first segment scheduled for a vote on Tuesday. Other crypto-related items remain on the agenda, though their timing for debate is still uncertain.
Mini dictionary: French National Assembly, the lower house of France’s Parliament, holds legislative power and is responsible for passing finance and tax-related laws in the country.
Lawmakers consider additional crypto regulations
On the same day, the Assembly turned down a separate proposal that would have allowed investors to carry forward realized crypto losses for ten years. That measure received only 18 votes of support, while 75 voted against and 3 abstained.
Looking ahead, lawmakers are set to debate an expansion of France’s exit tax. Under Amendment I-CF1822, individuals whose crypto portfolios exceed €800,000 ($895,000) could face tax on unrealized gains if they transfer residency abroad. The proposal aims to apply the country’s exit tax regime to significant crypto holders in order to prevent the loss of tax revenue through relocation.
Another amendment, I-2701, is focused on the declaration of self-custodial wallet holdings. If adopted, individuals would be required to report wallets holding more than €100,000 ($112,000) in digital assets for tax purposes.
As of Monday, these additional proposals are still under consideration for inclusion in the 2027 Finance Bill.
Lawmakers continue to debate new regulations targeting wealthy crypto investors and large individual wallet holders, signaling France’s intent to tighten oversight of the digital asset sector.
These latest developments reflect a broader trend in Europe, with multiple countries including France seeking to clarify and strengthen tax rules for crypto investors.
| Amendment | Main Effect | Threshold | Status |
|---|---|---|---|
| I-3898 | Tax on crypto-to-stablecoin swaps | No minimum | Adopted in Assembly |
| I-CF1822 | Exit tax on unrealized crypto gains | €800,000 portfolio | Under consideration |
| I-2701 | Mandatory wallet declaration | €100,000 in digital assets | Under consideration |
