France’s National Assembly approved an amendment that would make cryptocurrency-to-stablecoin conversions taxable starting in 2027. Lawmakers also proposed additional tax requirements for holders of large cryptocurrency portfolios.
France’s National Assembly, the lower house of parliament, approved an amendment to the 2027 budget bill that would eliminate tax deferral for conversions of cryptoassets into stablecoins classified as e-money tokens (EMTs) under the MiCA regulation. The proposal received support from 38 lawmakers.
Under current French law, exchanging one cryptoasset for another without receiving an additional cash payment doesn’t trigger immediate capital gains taxation. This allows investors to convert cryptocurrencies into fiat-pegged stablecoins without incurring a tax liability at the time of the exchange.
The approved amendment would exclude transactions involving the receipt of EMTs from this treatment. As a result, converting cryptocurrencies into MiCA-compliant stablecoins would be considered a taxable event, even without converting the assets into fiat currency.
The changes are proposed to apply to transactions conducted on or after January 1, 2027.
The amendment also revises how taxable gains from cryptoasset transactions are calculated. Gains would be determined as the difference between the proceeds from disposal and the acquisition cost of the specific assets, taking documented expenses into account. For identical cryptoassets purchased at different prices, the weighted-average acquisition cost would be used.
A separate transitional mechanism is proposed for cryptoassets acquired before January 1, 2027. Taxpayers would be able to choose between 2 methods for determining their original cost basis:
Actual acquisition cost. Using the documented purchase price of each cryptoasset or associated right.
Portfolio cost allocation. Allocating the total acquisition cost of a cryptocurrency portfolio, calculated under the previous rules as of December 31, 2026, among individual assets in proportion to their market values on that date.
The amendment’s authors argue that existing rules allow investors to realize gains in stablecoins without paying taxes, despite their economic similarity to fiat currencies.
The amendment’s approval doesn’t mean the new rules have become law. Implementation will require completion of the legislative process and adoption of the relevant provisions in the 2027 budget.
Alongside the proposed changes to stablecoin taxation, French lawmakers are considering 2 additional measures aimed at strengthening tax oversight of cryptoasset holders:
Amendment No. I-3432 proposes extending the exit tax to unrealized gains on cryptoassets when taxpayers change their tax residency. The tax would apply to individuals who lived in France for at least 6 of the 10 years preceding their move abroad and hold cryptoassets worth more than €800,000. Under the proposal, taxable gains would be calculated as the difference between the cryptocurrency portfolio’s market value on the date of the residency change and its acquisition cost. Existing tax deferral mechanisms would remain in place, while exchanges of one cryptoasset for another without additional cash payments wouldn’t be considered disposals.
Amendment No. I-2701 would introduce mandatory reporting for self-custodied cryptocurrency portfolios worth €100,000 or more. The requirement would cover assets held outside cryptocurrency service providers’ infrastructure, including noncustodial wallets. Under the proposal, these assets would be valued annually as of December 31. Failure to comply would result in a fine of up to €10,000.
Following the adoption of MiCA legislation, France was among the first countries whose financial regulator required all cryptocurrency companies operating in the jurisdiction to obtain a digital asset service provider (DASP) license. As of August 22, 2026, the ESMA register listed 35 French cryptocurrency companies.
