French Finance Committee Approves Tax on Crypto-to-Stablecoin Swaps for 2027 Budget

This legislative change could reshape how crypto investors manage their portfolios and tax liabilities in France.

• On October 7-9, 2026, the French National Assembly Finance Committee approved amendments to tax Bitcoin-to-stablecoin swaps as taxable events starting January 1, 2027.
• The amendments aim to close tax loopholes by treating exchanges of cryptocurrencies for MiCA-regulated stablecoins as disposals triggering capital gains taxation.
• The committee rejected the budget's revenue section, meaning the full National Assembly will debate the bill starting from the original text on October 13, 2026.

• Current tax rules in France defer capital gains taxation on crypto-to-crypto exchanges until conversion to fiat or spending, creating a gap in tax collection.
• The MiCA regulation defines electronic money tokens, including stablecoins, which are now subject to these new tax rules.
• Broader EU DAC8 reporting rules for crypto service providers took effect in 2026, increasing scrutiny on digital asset transactions.

The French National Assembly Finance Committee's recent approval of amendments to tax crypto-to-stablecoin swaps marks a significant shift in the regulatory landscape for digital assets in France. The proposed changes, spearheaded by Nicolas Sansu, aim to address perceived gaps in the existing tax framework, which previously allowed for tax deferral until the conversion of cryptocurrencies into fiat currency. This loophole has been a point of contention as the market for cryptocurrencies continues to grow, prompting the need for more robust regulatory measures.

Starting January 1, 2027, any swaps of cryptocurrencies for MiCA-regulated stablecoins will be treated as taxable events. This means that capital gains will be calculated based on the acquisition cost of the crypto assets, using weighted averages where applicable. The flat capital gains tax rate applicable to these transactions is set at 31.4%, which could significantly impact the profitability of crypto trading for investors in France.

Additionally, the committee adopted an exit tax amendment for households with over €800,000 in crypto assets transferring their residence abroad. This move indicates a broader strategy to ensure that high-net-worth individuals do not evade tax obligations by relocating to more favorable jurisdictions. The inclusion of loss carryforward provisions also suggests that the government is attempting to create a more balanced tax environment for crypto investors, allowing them to offset gains with previous losses.

However, the committee's rejection of the entire revenue section of the budget by a 31-3 vote means that these amendments do not automatically advance. The full National Assembly will now debate the bill starting from the original government text, which could lead to further modifications or even the potential scrapping of the proposed tax measures. Market participants have expressed concerns about regulatory uncertainty, which may affect Bitcoin price sentiment as the legislative process unfolds.

• Crypto investors in France will need to adjust their trading strategies to account for new tax liabilities.
• High-net-worth individuals with significant crypto holdings may consider relocating to avoid the exit tax.
• Crypto service providers will face increased compliance requirements under the new tax framework.

• Full Assembly Debate: The National Assembly's discussions starting October 13 will reveal potential changes to the proposed tax measures and their implications for investors.
• Market Reactions: Monitor Bitcoin price sentiment and trading volumes as regulatory uncertainty unfolds, which could indicate investor confidence or concern.
• Implementation of DAC8 Rules: The effectiveness of the broader EU DAC8 reporting rules will impact how crypto transactions are monitored and taxed across the EU.