French National Assembly Finance Committee Votes on Ten Cryptocurrency Amendments for 2027 Budget
The French National Assembly Finance Committee has voted on ten cryptocurrency amendments while reviewing the 2027 budget. As of October 7, three have been approved by the committee, one has been rejected, and the rest are still under consideration. None of the provisions are yet law, as the assembly must re-examine the government's original proposal.
The approved I-CF1826, proposed by Nicolas Sansu and 16 other members, treats the conversion of crypto assets into regulated stablecoins (e-money tokens under MiCA) as a taxable event, set to take effect on January 1, 2027. Current rules only tax conversions into fiat currencies like euros or the use of crypto assets to purchase goods and services, allowing for deferral of crypto-to-crypto exchanges, including stablecoins.
The I-CF1822, proposed by the same group, was approved by the committee on October 8. It expands the exit tax to crypto assets: individuals who have lived in France for six years and have family holdings exceeding €800,000 will be taxed on unrealized gains when they change their tax residency. Platform accounts, offshore holdings, and self-custody wallets are included, with the threshold matching that of the securities exit tax.
Another approved amendment allows for loss carryforward. Proposed by Daniel Labaronne, it permits realized losses on digital assets to be carried forward for ten years, making it a relatively favorable provision for holders. The rejected proposal by Eva Sas aimed to convert the real estate wealth tax into a personal wealth tax covering crypto assets.
Still under review are Charles de Courson's self-custody wallet reporting requirements: wallets valued at €100,000 or more at year-end must be reported, with penalties for non-reporting up to €10,000; another text proposes increasing fines for platforms refusing to cooperate with tax authorities from €10,000 to €50,000. Committee approval does not equal assembly approval, and the income section is expected to reconvene after October 13.
Buyers are holders looking to lock in their tax residency status before changing residency or converting to stablecoins, while sellers face pressure from French tax authorities moving the deferral point forward. The event is driven by budget amendments, not by market sell-offs. Beneficiaries are jurisdictions that still allow crypto-to-crypto deferral and have no crypto exit tax; those under pressure are high-net-worth self-custody holders in France and trading paths using stablecoins as tax buffers.
Source: Public Information
ABAB AI Insight
France's foundation for crypto taxation is the flat withholding tax established after 2019, with capital gains around 30%, and the taxable event defined by Article 150 VH bis of the Tax Code as the conversion to fiat currency or the purchase of goods and services. Crypto-to-crypto exchanges have long been treated as deferred, making stablecoins a tax buffer for French residents. In December 2025, the National Assembly committee attempted to require reporting for self-custody wallets exceeding €5,000, but this was removed by the joint committee on April 28, 2026, citing redundancy with DAC8 and privacy concerns; the current €100,000 version reflects a resurgence of the same control logic.
Sansu's group of amendments shifts the tax point from "returning to euros" to "converting to regulated stablecoins," directly applying the €800,000 threshold and six-year residency test from the securities exit tax to on-chain assets. The money does not enter a new fund but locks in unrealized gains and reporting obligations on the budget revenue side. The EU DAC8, effective since January 2026, requires platforms to collect identity and transaction data and report to tax authorities by mid-2027; the committee's text aims to fill the self-custody gap outside of platform reporting.
In contrast, after India set a 30% tax rate on crypto gains in 2022 and limited loss offsets, domestic trading volumes shifted offshore; after Portugal removed crypto benefits for non-habitual residents, some holders relocated; Italy raised crypto gains tax after 2023. France is now transitioning from "deferred exchanges" to "exit and stablecoin triggering taxation," not an industry expansion phase.
Structurally, this represents a shift in the tax base within regulatory changes. After stablecoins are defined as e-money tokens under MiCA, tax authorities no longer treat them as ordinary crypto assets but as quasi-cash. The exit tax changes the nature of residency from free exit to an event of unrealized gains liquidation, transferring pricing power from the holder's choice of when to realize to the rules of residency and asset location.
ABAB News · Cognitive Laws
Taxes are not applied at the time of sale, but at the time of exit.
Once stablecoins are treated like cash, the buffer becomes ineffective.
What platforms can report, wallets will be required to report.