French Parliamentary Committee Backs Stablecoin Levy and Crypto Exit Tax for 2027 Budget

A French National Assembly committee has signed off on a package of crypto tax measures slated for possible inclusion in the country's 2027 budget, including a proposed tax on stablecoins, an exit tax on crypto holdings, and a rule allowing investors to carry forward crypto losses for up to 10 years. The committee's vote is an early procedural step, not final enactment. The measures would still need to move through broader parliamentary debate and subsequent votes before taking legal effect, and could be amended, delayed, or rejected during the budget process. Further readings and potential Senate involvement remain key milestones. France has gradually expanded its digital-asset tax framework in recent years, aiming to align crypto with the treatment of securities and other financial instruments. Reporting did not specify how a stablecoin tax would be structured, including who would be liable or what rate would apply. The proposal comes as stablecoins face heightened scrutiny across the European Union following implementation of the Markets in Crypto-Assets (MiCA) regime, which already requires issuers in the bloc to meet reserve and disclosure standards. The exit tax element appears designed to deter individuals or entities from relocating assets or residency to sidestep French tax on crypto gains. France has long used exit-tax mechanisms for other asset classes, particularly for departing high-net-worth residents, and applying the concept to digital assets would extend an established fiscal tool to crypto. The 10-year loss carryforward stands out as the most investor-friendly component. If adopted, it would allow crypto losses to offset future gains over a decade, giving traders and long-term holders greater flexibility when reporting taxable events. Similar loss-relief provisions already exist for other assets under French tax law, making the crypto extension a harmonization move rather than a wholly new concept. France has positioned itself among the more active EU jurisdictions on crypto policy, with the Autorité des Marchés Financiers (AMF) playing a prominent role in licensing and oversight discussions. Market impact: A dedicated stablecoin tax could add compliance burden for issuers and users in France on top of MiCA transparency and reserve requirements. Exchanges and custodians serving French clients may need to build reporting systems well ahead of any 2027 start date if the proposal advances. The exit tax could influence relocation decisions among high-net-worth crypto holders, echoing debates in other countries with similar wealth-exit rules. By contrast, the 10-year loss carryforward could be viewed positively by market participants managing volatile portfolios, as it lengthens the window for losses to reduce taxable gains. FAQ • What did the committee approve? Budget provisions covering a stablecoin tax, a crypto exit tax, and a 10-year crypto loss carryforward rule for the 2027 budget. • Is this French law now? No. Committee approval is preliminary; the measures must still pass further parliamentary debate and votes. • Who would the exit tax apply to? Details were not disclosed, but exit taxes typically target those moving assets or residency to avoid domestic tax obligations. • How would the loss carryforward work? It would allow investors to offset crypto losses against gains for up to 10 years, similar to rules used for other asset classes in France. Originally reported by AltcoinGordon; written by Olivia Hayes. Republished with permission.