French legislators push forward with stablecoin taxation while considering wallet disclosure and expatriation tax measures
The National Assembly of France has approved a cryptocurrency tax measure focused on specific stablecoin transactions, as additional proposals concerning expatriation taxes and disclosure requirements for self-custodial wallets await further deliberation.
On Friday, members of the French legislature gave narrow approval to a fresh cryptocurrency taxation measure that has the potential to classify exchanges from crypto assets to stablecoins as events subject to taxation beginning in 2027.
Amendment I-3898 received approval from France's National Assembly on Friday through a tight vote count of 38 supporting, 37 opposing, and 25 choosing to abstain. Originally presented as committee amendment I-CF1826 by French Member of Parliament Nicolas Sansu, the measure secured adoption on Oct. 7.
The Assembly has scheduled a vote for Tuesday on the initial portion of the 2027 Finance Bill, as indicated by its official calendar. Additional proposals related to cryptocurrency taxation continue to await consideration, though uncertainty remains regarding whether individual measures will face debate or voting procedures on that particular day.
Should the stablecoin amendment become law, it would impose taxation on specific exchanges from cryptocurrency to stablecoins and modify the methodology France employs for computing capital gains taxes on crypto assets.
According to the terms of the proposal, individuals who exchange their Bitcoin (BTC) or alternative cryptocurrencies for stablecoins would activate a tax obligation on their profits, regardless of whether those gains have been converted to traditional fiat currency. The tax calculation methodology would incorporate the original acquisition cost of the cryptocurrency being sold along with the weighted average purchasing price.
French lawmakers to discuss crypto exit tax, self-custodial wallet reporting measures
In a separate action, the Assembly on Friday voted down a proposal that would have allowed the carry-forward of realized cryptocurrency losses over a 10-year period, with the measure receiving 18 votes in support, 75 votes in opposition, and 3 abstentions.
Members of the French legislature are making preparations to debate additional cryptocurrency-focused proposals as components of the upcoming year's budget legislation. Amendment I-CF1822 seeks to broaden France's existing exit tax framework to encompass unrealized capital gains in situations where taxpayers possessing combined crypto portfolio valuations that surpass €800,000 ($895,000) relocate their tax residences to foreign countries.
Legislators are simultaneously evaluating amendment I-2701, a measure that would mandate individuals to report the assets held within self-custodial wallets in cases where the aggregate value exceeded €100,000 ($112,000) during the applicable tax year.
As of Monday, both proposals remain under consideration for the 2027 Finance Bill.