France Approves Stablecoin Conversion Tax Starting 2027

French committee approves tax on crypto-to-stablecoin conversions from 2027

France’s National Assembly Finance Committee has approved a proposal that would make certain cryptocurrency conversions into stablecoins taxable starting Jan. 1, 2027, as part of the country’s draft 2027 budget package.

The measure, adopted under amendment I-CF1826 submitted by lawmaker Nicolas Sansu, targets swaps from cryptocurrencies into “qualifying electronic money tokens” under the EU’s Markets in Crypto-Assets (MiCA) framework. In practice, that refers to regulated, fiat-pegged stablecoins that meet MiCA’s definition.

All of the approved crypto-related amendments remain subject to further parliamentary approval before they can become law.

Under current French rules, individuals can generally exchange one cryptocurrency for another without immediately recognizing a taxable capital gain, as long as the transaction fits within the applicable deferral provisions. Supporters of the new amendment described the ability to move into stablecoins without triggering tax as a “loophole” in the existing framework.

If enacted, the change would mean investors could owe capital gains tax when converting volatile cryptoassets into certain stablecoins, even if they do not cash out into euros.

• Stablecoin conversion tax: Crypto-to-qualifying stablecoin swaps would become taxable from Jan. 1, 2027.
• Loss relief extension: The committee backed a separate amendment allowing eligible crypto trading losses to be carried forward and used to offset future gains for up to 10 years, rather than being limited to the same tax year.
• Crypto exit tax proposal: Another approved proposal would extend France’s exit tax to certain unrealized crypto gains when eligible taxpayers move their tax residence outside France, applying to households holding more than €800,000 in crypto assets, mirroring the threshold used for securities.

The committee’s discussions also addressed other crypto measures. A proposal to extend the wealth tax to crypto assets was rejected, while separate provisions on reporting requirements for certain self-custody wallets and penalties for platforms were still under review.

These proposals arrive as European reporting and compliance obligations tighten. The EU’s DAC8 directive requires platforms to collect customer identity and transaction data starting in 2026 and to report it to tax authorities by 2027, adding further structure to how crypto activity is monitored across the bloc.

For now, France’s existing regime remains in place, including a flat tax on crypto investment income that totals 31.4%. The National Assembly is expected to examine the broader 2027 finance bill in plenary before any of the amendments can take effect.