France Proposes Tax Overhaul for Crypto and Stablecoin Holdings

The proposed changes, spearheaded by lawmaker Nicolas Sansu, aim to reclassify conversions from cryptocurrencies into electronic money tokens as taxable events starting January 1, 2027. Currently, French tax law allows investors to swap digital assets without triggering immediate capital gains, a provision often used to move funds into stablecoins pegged to fiat currencies. The new amendment seeks to close this loophole, requiring gains to be calculated based on the difference between acquisition costs and disposal values.

To balance these tighter rules, the Finance Committee approved a proposal by Daniel Labaronne allowing investors to carry forward trading losses for up to 10 years. This shift would provide a longer window to offset future gains, moving away from the current system that restricts loss deductions to the same tax year. Additionally, officials are weighing an exit tax on unrealized gains for crypto holdings exceeding €800,000 for those moving their tax residence outside France. These measures remain under legislative review and require final parliamentary approval before they can be enacted.