France Advances Stablecoin Tax Framework in Closely Divided Vote

France Advances Stablecoin Tax Framework in Closely Divided Vote

France’s National Assembly has moved forward with cryptocurrency taxation reform by approving Amendment I-3898, a proposal that would designate stablecoin conversions as taxable events beginning in 2027. The vote, held on Friday, passed narrowly with 38 votes in support, 37 opposed, and 25 abstentions, underscoring the contentious nature of crypto policy in the country. The amendment originated from French legislator Nicolas Sansu’s committee proposal I-CF1826, which the Assembly had previously adopted on October 7.

The new framework will fundamentally alter how France taxes cryptocurrency transactions. Investors who convert Bitcoin, Ethereum, or other digital assets into stablecoins will now be subject to taxation on realized gains—a shift from treatments that only triggered tax liability upon conversion to fiat currency. The tax calculation methodology will employ the acquisition cost of the cryptocurrency being exchanged alongside the weighted average purchasing price, establishing a standardized approach to determining taxable gains for the digital asset market.

Multiple Crypto Tax Proposals Under Legislative Review

The stablecoin amendment represents just one element of France’s comprehensive cryptocurrency taxation overhaul. Several additional measures remain under consideration for the 2027 Finance Bill, with the Assembly scheduled to vote on the first section of the budget on Tuesday. These proposals reflect ongoing European efforts to establish clearer regulatory frameworks around digital asset ownership and taxation.

Amendment I-CF1822 would substantially broaden France’s exit tax regime by capturing unrealized cryptocurrency gains. Specifically, high-net-worth crypto holders with aggregate portfolio values exceeding €800,000 who relocate their primary residence outside of France would face taxation on their unrealized gains—extending the tax burden beyond merely crystallized profits. This provision represents a significant expansion of the country’s wealth-based exit taxation approach.

A more surveillance-focused proposal, Amendment I-2701, would require individuals to disclose all self-custodial wallet holdings if their total value surpasses €100,000 in a given tax year. This measure has proven particularly controversial among privacy advocates and decentralization proponents, who view mandatory reporting of self-custodial holdings as a challenge to cryptocurrency’s foundational principles of financial sovereignty.

Signaling Legislative Positions

The Assembly simultaneously rejected a separate proposal that would have permitted investors to carry forward realized cryptocurrency losses across a ten-year period. The amendment received minimal support, with only 18 votes in favor against 75 opposed and 3 abstentions, signaling clear legislative resistance to loss-carryforward mechanisms for digital assets.

France’s regulatory moves on cryptocurrency taxation could set important precedents for how the broader European Union approaches digital asset regulation in the years ahead.

Source: French National Assembly, via Cointelegraph. Not financial advice.