French lawmakers support taxing stablecoin conversions in the 2027 budget proposal
The French Financial Council supports the taxation of stablecoin exchanges and imposes taxes on unrealized crypto gains for individuals with more than 800,000 euros in crypto assets who move abroad.
The Finance Committee of the French National Assembly approved a related proposal this week, proposing to levy taxes on stablecoins that are pegged to the French franc, and extending France's exit tax to crypto investors.
An amendment I-CF1826 submitted by French lawmaker Nicolas Sansou (N-token issuance las Sansu) and passed on Wednesday will make the act of converting to stablecoins pegged to fiat currency a taxable event starting from January 1, 2027.
The explanatory text refers to the current tax treatment as a “loophole” in legislation, according to machine translation.
Taxable income will be calculated based on the acquisition cost of the disposed assets; if the same token is purchased multiple times at different prices, a weighted average method will be used.
The French parliament is scheduled to begin deliberating on the 2027 fiscal bill on Tuesday, October 13th. If the bill is ultimately passed, investors may be required to pay capital gains tax, even if they do not convert it into French francs.
Amendment I-CCF798 by Member Daniel Labronna (Daniel Labaronne) was also approved on Wednesday. This amendment allows investors to carry forward realized crypto losses for a period of 10 years. Another amendment regarding exit taxes, which was passed on Thursday, will cover unrealized gains incurred by taxpayers whose family's crypto holdings are worth more than 800,000 euros (895,000 US dollars) when they move their residence overseas.
Fidelity indicates that institutions have no turning back as they move towards the future of tokenized chains.
European crypto taxation proposals take different paths
On Wednesday, the Greek National Economy and Finance Ministry announced a draft bill proposing to levy a 10% tax on individual capital gains from cryptocurrencies, with earnings of up to 500 euros (560 US dollars) per year being exempt from taxation.
Unlike France's proposal to tax exchange activities, Greece's proposal will not impose taxes on exchanges between cryptocurrencies.
France and other EU member states must implement the EU's tax declaration rules in accordance with the eighth amendment to the 'Directive on Administrative Cooperation' ( DAC8 ).
DAC8 requires encryption service providers to collect user identity and transaction data, and to report it to the national tax authorities, which in turn exchange this information with the corresponding agencies of other EU member states. The encryption reporting requirements will come into effect on January 1, 2026. The first round of information exchanges covering transactions from 2026 is expected to be completed by September 2027.
Magazine: How are the EU's crypto taxation rules expected to apply to users and platforms?
