France’s National Assembly Finance Committee approved proposals this week to tax swaps into fiat-pegged stablecoins and extend the country’s exit tax to crypto investors. Amendment I-CF1826, submitted by MP Nicolas Sansu and adopted Wednesday, would make crypto conversions into fiat-pegged stablecoins taxable events starting Jan. 1, 2027. The explanatory text describes the current treatment as a “loophole in the legislation.” Gains would be calculated using acquisition costs, with weighted averages for holdings bought at different prices. If enacted, investors could incur capital gains taxes without cashing out into fiat.
MP Daniel Labaronne’s Amendment I-CCF798, also adopted Wednesday, allows investors to carry forward realized crypto losses for 10 years. A separate exit tax amendment adopted Thursday covers unrealized gains when taxpayers with household crypto holdings worth more than 800,000 euros ($895,000) transfer their residences abroad. The full Assembly is scheduled to begin examining the 2027 Finance Bill on Tuesday, Oct. 13. These measures align with EU Directive DAC8 reporting rules, which require crypto service providers to collect user identities and transaction data for tax authorities, effective since Jan. 1, 2026.
The committee’s approval of Amendment I-CF1826 signals a decisive move to close perceived arbitrage opportunities where digital asset holders convert value into stablecoins without triggering immediate tax liabilities. By defining these conversions as taxable events, French legislators are treating stablecoins functionally equivalent to fiat currency for tax purposes, thereby eliminating the distinction that previously allowed deferral of capital gains recognition. This approach fundamentally alters the incentive structure for holding digital assets within France, potentially accelerating liquidation or restructuring strategies among high-net-worth individuals ahead of the 2027 implementation date.
Simultaneously, the extension of the exit tax to unrealized gains for households exceeding 800,000 euros introduces significant operational friction for cross-border mobility. While the provision aims to prevent tax base erosion through relocation, it imposes complex valuation requirements on illiquid or volatile crypto positions at the moment of departure. Coupled with the mandatory loss carry-forward mechanism, the legislative package attempts to balance revenue protection with investor fairness, yet it raises questions about compliance burdens for exchanges and custodians who must now track detailed acquisition histories and residence changes to support accurate tax reporting under both national law and EU DAC8 standards.
