France Finance Committee Backs Proposed Crypto Taxes, Rejects Revenue Section

France’s National Assembly Finance Committee backed proposed crypto tax changes before rejecting the revenue section of the country’s 2027 budget, leaving the measures outside the government’s original text.

The amendments would target certain conversions of crypto assets into electronic-money tokens defined under the European Union’s Markets in Crypto-Assets Regulation, including fiat-backed stablecoins. They would also extend France’s exit tax to some unrealized crypto gains and allow crypto losses to offset future gains for up to 10 years.

The committee adopted the stablecoin-related amendment and the loss-carryforward measure on Oct. 7. It adopted the proposed crypto exit-tax amendment on Oct. 8, while examining the first part of the 2027 budget from Oct. 7 through Oct. 9.

The stablecoin amendment would remove the existing tax deferral for qualifying conversions beginning Jan. 1, 2027. It would apply the existing tax framework rather than establish a new tax rate, treating a conversion into a qualifying electronic-money token as a taxable disposal.

France currently taxes crypto gains when assets are sold for traditional currency or used to purchase goods and services. The proposal would address conversions into qualifying stablecoins within that framework.

The proposed exit tax would apply to unrealized gains when a household’s combined crypto holdings exceed €800,000. It would cover transfers of French tax residence beginning Jan. 1, 2027, including crypto held through foreign accounts, custodians and self-custodied wallets.

Nicolas Sansu, the amendment’s author, wrote that the stablecoin measure would remove “the tax deferral enjoyed, without valid reason, by conversions of crypto assets into stablecoins.” He described the exit-tax proposal as a measure covering unrealized gains when the total value of crypto assets exceeds €800,000.

The third measure would let taxpayers carry crypto losses forward for 10 years to offset future crypto gains.

The committee’s rejection of the budget’s revenue section means the amendments were not enacted. The full Assembly will begin with the government’s original text, and the measures would need to be reintroduced during the floor debate. The proposals follow earlier committee action on France’s crypto tax measures.