Summary
- The Finance Committee of France has approved amendments to treat swaps from cryptocurrency into MiCA-compliant stablecoins as taxable events starting January 1, 2027, and to implement an exit tax for individuals with crypto holdings exceeding €800,000.
- On October 9, the committee rejected the budget's revenue section by a vote of 31 to 3, meaning that discussions will revert to the government's initial proposal without the crypto-related amendments.
- Another amendment allows investors to carry forward any crypto losses for a decade; the Assembly will debate the revenue section starting October 13, with a vote scheduled for October 20.
This week, France's National Assembly Finance Committee voted on new tax measures affecting cryptocurrency holders. The proposed rules would impose taxes on those converting their crypto assets into stablecoins—digital currencies pegged to traditional fiat currencies like the euro or dollar—and introduce an exit tax for wealthy individuals relocating abroad.
However, the significance of these votes may be limited for now, as the committee recently rejected the entire revenue section of the budget by a margin of 31 to 3, meaning the full Assembly will begin discussions based on the original text proposed by the government, excluding the new crypto amendments.
The amendments will not automatically be included in the revised text, so supporters will need to reintroduce them during the floor debate commencing on October 13. Both proposed measures are not yet law and must navigate further legislative processes.
The stablecoin amendment, introduced by Nicolas Sansu of the left-leaning GDR group and supported by 16 co-signers, aims to close what they describe as a loophole in the current legislation. Currently, swapping Bitcoin for stablecoins does not trigger any tax in France, as the government only imposes taxes when profits are realized through cash transactions or spending.
This amendment addresses electronic money tokens as defined by the MiCA framework, which encompasses most stablecoins tied to a specific currency. If enacted, any swaps into stablecoins would be treated as taxable sales starting January 1, 2027, with gains calculated based on the original purchase price of the assets.
While the amendment does not specify a tax rate, it aligns with France's flat tax, which increased to 31.4% as of January 1, following adjustments to the social charge. Proponents assert that they are merely applying existing tax laws to an area that has been overlooked.
They argue that stablecoins can function as standard investment tools, facilitating payments at crypto service providers or enabling purchases of other digital assets. Therefore, allowing tax-free exchanges into stablecoins is seen as an unfair advantage that permits gains to escape taxation.
A second amendment by Sansu seeks to extend France's exit tax to cryptocurrency holdings. This tax is levied on unrealized gains when individuals change their tax residency to another country.
This provision would apply to taxpayers whose total crypto holdings, including those managed by custodians, exceed €800,000 and who have been French tax residents for at least six of the past ten years. This threshold mirrors the one already used for stock investments, and the deferral of tax payments would follow the existing stock regulations.
Swaps between cryptocurrencies without any cash component would not be considered sales for the exit tax. Taxpayers would need to provide a declaration of all cryptocurrency holdings on the date of their move, including assets held in self-custody or abroad, which refers to wallets controlled by the individual rather than exchanges.
Proponents highlight that direct crypto holdings currently escape the exit tax, unlike equivalent shares, and emphasize the ease with which digital assets can be transferred internationally.
Another approved amendment by Daniel Labaronne allows investors to carry forward cryptocurrency losses for ten years to offset future gains, similar to existing provisions for stocks. Currently, unutilized losses cannot be carried over under the current rules.
In late October 2025, the Assembly passed another tax proposal involving cryptocurrencies, approving a 1% annual levy on “unproductive” wealth exceeding €2 million, which includes digital assets alongside luxury items like gold and yachts. Attorney Burçak Ünsal remarked to Decrypt that taxing early token holders could be seen as “economically unjust.”
Coinbase announced in October 2024 that it would delist stablecoins that do not comply with the MiCA regulations for its European customers by December 30, directing them towards compliant options like USDC and EURC.
The Assembly will begin debating the budget's revenue section on October 13, with a formal vote expected on October 20. Should the amendments be reintroduced and approved, the stablecoin and exit tax regulations would come into effect on January 1, 2027.