France Clears Path for 2027 Tax on Stablecoin Swaps, Tightens Exit Tax for Wealthy Crypto Holders

France's National Assembly Finance Committee has backed a new set of crypto tax measures that would broaden when capital gains are deemed to occur, including cases where investors never convert back into euros. The committee approved amendments to tax certain swaps into fiat-pegged stablecoins and to expand "exit tax" rules for high-net-worth taxpayers who move their tax residence abroad. If adopted into law, the changes would mean investors could owe capital gains tax even while staying entirely within the crypto ecosystem, raising potential liquidity issues for taxpayers who use stablecoins to park funds or manage cash-like balances. Key points - Stablecoin swaps in scope: Conversions of crypto into fiat-pegged stablecoins would become taxable from Jan. 1, 2027. - Loss relief: Realized crypto losses could be carried forward for up to 10 years. - Exit tax expansion: Unrealized gains could be taxed when households with crypto holdings above €800,000 ($895,000) transfer their residence abroad. Stablecoin conversions would be treated as taxable disposals A central element is Amendment ICF1826, submitted by MP Nicolas Sansu and adopted on Wednesday. It would treat conversions into fiat-pegged stablecoins as taxable events starting Jan. 1, 2027. The committee's accompanying text characterizes the current treatment as a legislative "loophole." Under the proposal, gains would be computed using the acquisition cost of the assets disposed of. Where the same token was acquired at different prices, the amendment calls for a weighted-average method to determine cost basis. Timeline: the full National Assembly is set to begin examining the 2027 Finance Bill on Tuesday, Oct. 13. If the measure survives the legislative process, swapping into stablecoins could trigger capital gains tax even without a fiat cash-out. Tax due even without a bank withdrawal The proposed approach targets value moving into a specific category of crypto asset rather than a sale into traditional currency. For users who rely on stablecoins for trading, payments, collateral management, or temporary positioning, the rule could create a mismatch between tax owed and available euro liquidity to pay it. The change also raises the bar on recordkeeping, particularly for investors who frequently rotate between tokens or execute multi-leg strategies that end in stablecoins. Loss carryforwards and a broader exit tax net The committee also adopted Amendment ICCF798, introduced by MP Daniel Labaronne and approved on Wednesday, allowing taxpayers to carry forward realized crypto losses for 10 years. Separately, an exit tax amendment adopted on Thursday would extend taxation of unrealized gains when certain taxpayers move abroad. As described in the source material, it would apply when household crypto holdings exceed €800,000 ($895,000) at the time the residence is transferred. That would increase the potential tax cost of relocating, even if assets are not sold for fiat. EU context: more reporting, clearer triggers France's move comes as European crypto tax approaches diverge. The source material cites Greece, where a draft bill proposes a 10% tax on individuals' crypto capital gains, with an exemption for annual gains up to 500 euros ($560), while leaving crypto-to-crypto exchanges untaxed. Separately, EU-wide reporting rules are expanding tax authorities' visibility. Under DAC8 (the eighth amendment to the Directive on Administrative Cooperation), crypto service providers must collect identity and transaction data and report it to national tax authorities, which then exchange information across member states. DAC8 reporting begins applying on Jan. 1, 2026, and the first information exchanges covering 2026 transactions are due by Sept. 2027. For investors, the combination of broader taxable definitions and stronger reporting infrastructure increases the likelihood of scrutiny. What to watch The key question is whether the stablecoin conversion tax and the expanded exit tax remain intact through the full parliamentary process. Investors in France will be watching the 2027 Finance Bill debate beginning Oct. 13, with particular attention to how "fiat-pegged stablecoins" are defined in practice and how taxpayers can plan for liabilities that may arise without converting back into fiat. This article was originally published as French Finance Panel Approves 2027 Stablecoin Swap Tax and Exit Tax on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.