France passes crypto-to-stablecoin tax amendment 38-37

France’s National Assembly adopted Amendment I-3898 on Friday, October 16, with 38 lawmakers in favor, 37 against and 25 abstaining, a single-vote margin that would make conversions from Bitcoin (BTC) or other cryptocurrencies into stablecoins taxable events, Ambcrypto reported. The measure is not yet law and must survive the remainder of the 2027 Finance Bill process.

The proposal began as committee amendment I-CF1826, introduced by MP Nicolas Sansu and adopted on October 7, according to Cointelegraph. The Assembly is scheduled to vote on the first part of the 2027 Finance Bill on Tuesday, though it is unclear whether each crypto-related proposal will be debated that day.

Also read: Crypto Today: FBI director amends disclosure, Standard Chartered brings USDC to banking rails, France cracks down on wrench attacks

Key facts

• Amendment I-3898 passed the National Assembly on October 16 by 38 votes to 37, with 25 abstentions.
• Under the measure, a crypto-to-stablecoin conversion would trigger a tax on gains even without converting into fiat currency.
• The amendment would calculate gains for assets bought at different prices using a weighted-average purchase cost.
• A separate proposal to carry forward realized crypto losses for 10 years was rejected on the same day, 18 in favor to 75 against, with 3 abstentions.
• Amendment I-CF1822 would extend France’s exit tax to unrealized crypto gains for taxpayers with portfolios above €800,000 ($895,000) who move abroad.

What changes for crypto holders

Today, swapping BTC for a stablecoin in France does not trigger taxation. Under the amendment, that swap would count as a taxable event, and the gain would be measured against the acquisition cost of the asset sold. The weighted-average method is intended to simplify accounting for holdings purchased at multiple prices, but it would apply to exchanges as well as sales.

Separately, Amendment I-2701 would require individuals to declare holdings in self-custodial wallets if their total value exceeded €100,000 ($112,000) in the relevant tax year, Cointelegraph reported. Cointelegraph said both the exit tax proposal and the self-custodial wallet reporting proposal remained under consideration for the 2027 Finance Bill as of Monday.

Also read: France panel backs stablecoin swap tax in 2027 budget

Why it matters

The narrow margin signals that French lawmakers are divided over how far crypto taxation should reach into trades that never touch a bank account. If enacted, the stablecoin rule would affect anyone who moves between crypto assets and dollar- or euro-pegged tokens, a common step for traders seeking to lock in gains without converting to fiat. The rejected loss carry-forward proposal would have offered a counterweight to higher taxes on gains; its defeat leaves the relief absent from the package. The exit tax and self-custody reporting proposals would add further compliance obligations for larger holders.

What to watch

The Assembly’s vote on the first part of the 2027 Finance Bill on Tuesday, and whether Amendment I-CF1822 and Amendment I-2701 are brought forward that day or deferred. The final text of the Finance Bill will determine whether the stablecoin measure becomes law.

Reported by ambcrypto.com.

Sources: AMBCrypto, Cointelegraph