France advances crypto-to-stablecoin tax proposal by just one vote
Amendment I-3898 cleared the National Assembly 38 to 37.
French lawmakers just approved an amendment that would make crypto-to-stablecoin conversions taxable.
It’s not law yet. But perhaps it’s time for French traders to rethink the way they push their money around.
France voted to make crypto-to-stablecoin transactions taxable
It came down to a narrow, single vote!
On October 16, France’s National Assembly adopted Amendment I-3898. The amendment passed by a single vote, with 38 lawmakers supporting it, 37 opposing it, and 25 abstaining.
It started life as a committee amendment I-CF1826, introduced by MP Nicolas Sansu and approved on October 7.
What would it actually change? Right now, swapping Bitcoin [BTC] for a stablecoin in France doesn’t trigger taxation. Under this amendment, that swap would count as a taxable incidence.
No fiat needed!
The amendment would also change how gains are calculated. For cryptocurrencies bought at different prices, it proposes using a weighted-average purchase cost to determine the gain when those assets are sold or exchanged.
It’s not law yet, though. The Assembly is set to vote on the first part of the 2027 Finance Bill tomorrow. A few other crypto proposals are on the table as well, but it’s not quite known which ones would come up on the day.
What else is happening in France?
The stablecoin swap tax isn’t the only crypto idea on the table.
On the same day, lawmakers shot down a proposal that would’ve let investors carry forward realised crypto losses for 10 years. That one wasn’t close at all, with 18 in favor and 75 against. 3 abstained.
Two more proposals are in play.
Amendment I-CF1822 would extend France’s exit tax to crypto. If your total crypto portfolio is worth more than €800,000 [$895,000] and you move abroad, you could be taxed on gains you haven’t even cashed in yet.
Then there’s Amendment I-2701. It would require people to declare what’s in their self-custodial wallets if the total value goes over €100,000 [$112,000] in a given tax year.
French crypto holders have a lot to keep an eye on this week.
Final Summary
- France’s National Assembly could make crypto-to-stablecoin swaps taxable from 2027.
- Lawmakers are also considering a crypto exit tax above €800,000.
