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- France's National Assembly Finance Committee adopted amendments to tax crypto-to-stablecoin conversions and allow 10-year loss carryforwards.
- The Oct. 7 amendments were adopted as part of France's 2027 budget bill during committee examinations.
- Neither measure is final law as the budget package still faces further debate and votes in parliament.
French lawmakers have backed separate proposals that would make some crypto-to-stablecoin conversions taxable while allowing individual investors to carry unused crypto losses forward for up to 10 years.
The National Assembly’s Finance Committee adopted both amendments on Oct. 7 as part of France’s 2027 budget bill. Neither measure is final law, with the package still facing further debate and votes in parliament.
Crypto-to-Stablecoin Conversions Could Become Taxable Events
Under existing French rules, exchanges between digital assets without a cash payment generally receive a tax deferral. That means an investor can swap Bitcoin for another crypto asset without immediately realizing a taxable capital gain.
The proposed amendment would remove that treatment when an investor receives an electronic money token as defined under the EU’s MiCA regulation. That category includes fiat-referenced stablecoins structured as e-money tokens.
A Bitcoin-to-USDC or Bitcoin-to-EURC conversion could therefore trigger taxation even if the investor never converts the proceeds into conventional bank money. The amendment also revises parts of France’s crypto gain-calculation rules alongside the stablecoin change.
Crypto Losses Could Carry Forward for Up to 10 Years
A separate amendment would give individual crypto investors more flexibility when reporting losses. Current rules allow losses on digital asset disposals to offset gains of the same type during the same tax year. Any unused loss mostly expires at year-end.
The proposal would let taxpayers carry unused crypto losses forward for 10 years and offset them against future gains of the same nature. The change would bring digital assets closer to France’s existing treatment of losses on securities.
Committee Approval Does Not Make Either Measure Final Law
The two amendments were adopted as lawmakers examined the first part of the 2027 finance bill. Committee approval does not guarantee that either measure will appear in the final budget. The National Assembly must continue debating the legislation before it moves through the remaining parliamentary process.
If enacted in their current form, the changes would tighten taxation when crypto gains move into qualifying stablecoins while giving investors a much longer period to use losses against future gains.
