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