French lawmakers have approved a proposed amendment that could make certain cryptocurrency-to-stablecoin conversions taxable from January 2027, introducing a significant potential change to the country's digital asset taxation framework.
The amendment, introduced by lawmaker Nicolas Sansu, passed in the National Assembly on October 16 by a narrow margin of 38 votes to 37, with 25 abstentions. It forms part of France's proposed 2027 Finance Bill and remains subject to further legislative approval.
Under the existing tax framework, qualifying exchanges between cryptocurrencies generally benefit from deferred taxation until investors convert their assets into traditional currencies or make certain taxable purchases. The proposed changes would remove that treatment when digital assets are exchanged for qualifying electronic money tokens, a category that includes certain fiat-backed stablecoins under the European Union's MiCA regulation.
The measure could have significant implications for cryptocurrency investors who rely on stablecoins to manage market volatility without withdrawing funds into conventional bank accounts. Such transactions could potentially trigger capital gains tax obligations even when investors remain within the digital asset ecosystem.
The proposed reform also introduces changes to the calculation of cryptocurrency acquisition costs, potentially creating additional recordkeeping requirements for market participants.
However, the amendment has not yet become law and must pass further parliamentary stages before implementation. Its final provisions and effective date will depend on the outcome of the legislative process.
The proposal reflects growing regulatory attention toward digital asset taxation across Europe as governments seek to strengthen transparency and adapt existing financial rules to cryptocurrency markets.
