French Assembly backs tax on crypto-to-stablecoin swaps by one vote

France's National Assembly adopted a crypto tax amendment on Friday that would make swaps from crypto into certain stablecoins taxable events from 2027. The chamber backed Amendment I-3898 with 38 votes in favor, 37 against and 25 abstentions, according to the official vote record.

The amendment was introduced by MP Nicolas Sansu and incorporated after Article 4 of the 2027 Finance Bill in its first reading. It began as committee amendment I-CF1826 and was adopted Oct. 7 before reaching the floor.

Under the measure, converting bitcoin or another cryptocurrency into a stablecoin would trigger tax on the gains even without a conversion into fiat currency, Cointelegraph reported. The calculation would use the acquisition cost of the crypto asset sold and its weighted average purchase price. The Defiant described the change as ending tax deferral for swaps into single-currency stablecoins starting Jan. 1.

The vote record lists 100 members voting, with 75 votes cast and an absolute majority of 38. The record dates the ballot to the second sitting on Friday, Oct. 16, 2026. The chamber also rejected a separate proposal to carry forward realized crypto losses for 10 years, by 18 votes in favor, 75 against and 3 abstentions.

The amendment is not yet law. The Assembly is scheduled to vote on the first part of the 2027 Finance Bill on Tuesday, according to its published schedule, and the bill still has to pass both chambers.

Lawmakers are weighing other crypto measures for the budget. Amendment I-CF1822 would extend France's exit tax to unrealized gains when taxpayers with crypto portfolios above 800,000 euros transfer their residence abroad. Amendment I-2701 would require individuals to declare holdings in self-custodial wallets if their total value exceeded 100,000 euros in the relevant tax year. Cointelegraph reported the dollar equivalents as about $895,000 and $112,000.

Both proposals remained under consideration for the 2027 Finance Bill as of Monday. Cointelegraph said it was unclear whether each would be debated or voted on during the budget session.

Stablecoins are tokens designed to hold a steady value, usually one US dollar or euro, and they are widely used to settle trades on crypto exchanges. A holder who shifts from bitcoin into a stablecoin keeps exposure to a dollar-pegged asset rather than cash, which is why the French proposal treats the swap as a realization event.

The change would apply to swaps into stablecoins rather than to every crypto trade. Under the proposal, the taxable gain is the difference between the sale value and the weighted average purchase price of the asset sold, using its acquisition cost. Cointelegraph reported that this method would apply even when the investor keeps the proceeds in a stablecoin rather than converting them to cash.

The vote record shows the amendment drew support across much of the left and center, including La France insoumise, the Socialists, the Ecologists, Les Democrates and Horizons, while most voting members of the far-right National Rally abstained. The record also notes a correction from member Olivia Gregoire, who said she had intended to vote against the amendment but was recorded in favor.

The Finance Bill is the annual budget law that sets French tax rates and rules for the following year. The crypto provisions are attached to that bill rather than moving as standalone legislation, so their fate depends on the wider budget process involving the Assembly, the Senate and the government.

The Assembly vote leaves the outcome open. If the 2027 Finance Bill passes with the amendment, the swap tax would take effect at the start of next year. If the measure is dropped or revised in later readings, the current treatment would continue. The Defiant said the amendment is not yet law.