A French National Assembly Finance Committee has voted on amendments that would introduce taxes on stablecoin swaps and impose an exit tax on wealthy cryptocurrency holders relocating abroad. However, the committee’s subsequent rejection of the entire budget revenue section introduces significant uncertainty regarding the future of these proposed measures.
These amendments, initially intended for inclusion in the government’s budget, do not automatically carry over following the revenue section’s rejection. Consequently, proponents must reintroduce them for consideration during the full Assembly’s debate, scheduled to begin on October 13.
Stablecoin Swap Tax Proposal
One key amendment approved by the committee targets stablecoin swaps. Currently, swapping cryptocurrencies like Bitcoin for stablecoins—tokens pegged to official currencies such as the dollar or euro—does not trigger a tax event in France unless gains are converted into fiat currency. The proposed amendment, filed by Nicolas Sansu of the GDR group and co-signers, aims to close this perceived loophole. From January 1, 2027, swapping into an electronic money token, as defined by the EU’s MiCA regulation, would be considered a sale. The gain would be calculated based on the original purchase price, and the tax rate would align with France’s existing flat tax, which currently stands at 31.4%.
Supporters of this amendment argue that stablecoins function as investment vehicles and that deferring taxation on swaps into them is unjustified. They contend that the amendment applies existing tax law to a scenario it previously missed, rather than introducing a new burden.
Crypto Exit Tax Proposal
A second amendment also approved by the committee would extend France’s exit tax to cryptocurrency holdings. This tax is levied on unrealized gains when a taxpayer moves their tax residence abroad. The proposed exit tax would apply to individuals whose combined crypto assets exceed €800,000 and who have been French tax residents for at least six of the preceding ten years, effective from January 1, 2027. The threshold and deferral rules are reportedly aligned with those for traditional stock assets. Swaps between different cryptocurrencies, without a cash component, would not be considered sales for the purpose of this exit tax. Proponents argue this measure addresses the disparity where crypto assets can be moved across borders more easily than traditional investments, potentially avoiding taxation.
Loss Carry-Forward Amendment
Additionally, an amendment proposed by Daniel Labaronne, which won committee approval, would allow investors to carry forward crypto losses for up to 10 years to offset future gains, mirroring the treatment of stock losses. Currently, unused crypto losses cannot be carried over.
Legislative Uncertainty
The committee rejected the budget’s revenue section by a vote of 31 to 3. The floor debate on the original budget revenue section is set to commence on October 13, with a formal vote anticipated on October 20. If the crypto tax amendments are reintroduced and successfully navigate the legislative process, the stablecoin swap tax and the crypto exit tax would be effective from January 1, 2027.
In related news, Coinbase announced in October 2024 that it would delist stablecoins not compliant with MiCA for its European customers by December 30, encouraging the use of compliant alternatives like USDC and EURC.
Uncertainties remain regarding whether the proposed stablecoin and exit tax amendments will be successfully reintroduced and passed by the full National Assembly. The specific tax rate for stablecoin swaps and the detailed implementation of the exit tax are also subject to further legislative action. The outcome of the formal vote on October 20 will provide further clarity on the budget’s revenue section.
Why This Matters
The materials describe a narrow update: The French National Assembly Finance Committee approved amendments to tax stablecoin swaps and impose an exit tax on wealthy crypto holders moving abroad. Whether the stablecoin swap tax amendment will be reintroduced and pass the full Assembly.
Broader Context
Source materials place the factual news in this context: France’s National Assembly Finance Committee voted this week to tax crypto holders who swap into stablecoins—tokens tied to a single official currency, such as the dollar or the euro—and to charge an exit tax on wealthy holders who move abroad.
