France Advances Stablecoin Tax
BITmarkets Team
Oct 21, 2026
France's National Assembly voted in favor of Amendment I-3898, with 38 lawmakers supporting the measure, 37 opposing it and 25 abstaining. The proposal was originally introduced by French MP Nicolas Sansu as committee Amendment I-CF1826 and received committee approval on Oct. 7.
If enacted, the legislation would require investors to pay tax on gains realized when exchanging Bitcoin (BTC) or other cryptocurrencies for stablecoins, even if the proceeds are not converted into traditional currencies.
France moves toward taxing crypto-to-stablecoin conversions
Under France's existing cryptocurrency tax framework, individual investors are subject to a flat capital gains tax rate of 31.4%. The newly approved amendment would extend this treatment to transactions involving conversions from cryptocurrencies into stablecoins.
This would mean that investors exchanging appreciated digital assets for stablecoins could incur a tax obligation without withdrawing funds into euros or another fiat currency. The proposal represents a potential change to how cryptocurrency transactions are taxed in France, particularly for investors who use stablecoins to manage their portfolios or temporarily reduce exposure to market volatility.
However, the amendment has not yet become law. The National Assembly postponed a vote on the revenue section of the 2027 Finance Bill. That portion of the budget includes the proposed stablecoin taxation measures, meaning the amendment must still pass through the remaining legislative process before taking effect.
French lawmakers reject crypto loss carryforward proposal
Alongside the stablecoin taxation amendment, French lawmakers considered a separate measure that would have allowed investors to carry forward realized cryptocurrency losses for up to 10 years. The National Assembly rejected the proposal on Friday, with 18 votes in favor, 75 against and three abstentions.
The measure would have provided investors with a mechanism to offset future taxable gains against cryptocurrency losses realized in previous years. Its rejection comes as lawmakers continue reviewing additional digital asset taxation proposals within the broader 2027 budget discussions.
Crypto exit tax and self-custodial wallet reporting under consideration
French legislators are also examining proposals that could introduce additional tax obligations and reporting requirements for cryptocurrency holders. One proposal, Amendment I-CF1822, seeks to extend France's existing exit tax framework to unrealized cryptocurrency gains.
Under the proposed rules, individuals holding cryptocurrency portfolios worth more than €800,000 ($895,000) could become subject to exit tax provisions when transferring their tax residence outside France. Another measure, Amendment I-2701, would introduce reporting requirements for individuals holding digital assets in self-custodial wallets.
The proposal would require taxpayers to declare their self-custodial cryptocurrency holdings if their combined value exceeded €100,000 ($112,000) during the relevant tax year. Both amendments remained under consideration as of Monday and have not received final legislative approval.
Together, the proposals indicate that French lawmakers are exploring broader changes to cryptocurrency taxation, covering stablecoin conversions, cross-border residency changes and the disclosure of privately held digital assets. Their eventual implementation will depend on the outcome of the remaining parliamentary discussions surrounding France's 2027 Finance Bill.
Sources:
https://cointelegraph.com/news/france-stablecoin-tax-eyes-self-custodial-wallets-exit-tax
https://www.assemblee-nationale.fr/dyn/17/amendements/3210A/AN/2701?utm
https://www.assemblee-nationale.fr/dyn/17/amendements/3210A/AN/3432
