French lawmakers back stablecoin swap tax in 2027 budget bill
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
France’s National Assembly Finance Committee approved proposals to tax swaps into fiat-pegged stablecoins starting January 1, 2027, treating such conversions as taxable events. The amendment was submitted by MP Nicolas Sansu and seeks to close what is described as a current "loophole" in tax legislation. Additionally, the committee adopted an amendment allowing crypto investors to carry forward realized losses for 10 years and extended the country’s exit tax to cover unrealized gains when individuals with significant crypto holdings transfer residency abroad.
Why it matters
This development means French crypto investors could face capital gains taxes even when converting crypto assets into stablecoins, not just when cashing out into fiat currency. The proposed changes highlight France’s move toward stricter and more comprehensive crypto taxation amid wider European regulatory alignment. The source does not elaborate further on broader market or user impacts.
Key context
The tax treatment amendment aims to address a perceived loophole where crypto-to-stablecoin conversions were untaxed. The changes correspond with EU-wide tax reporting standards under DAC8, which mandates crypto service providers to report user transactions to national tax authorities starting in 2026. France’s proposal contrasts with Greece’s draft bill, which exempts crypto-to-crypto exchanges from tax. The full French Assembly will review the 2027 Finance Bill beginning October 13.
Key numbers and entities
French MP Nicolas Sansu (Amendment I-CF1826), MP Daniel Labaronne (Amendment I-CCF798), France’s National Assembly Finance Committee, European Union tax regulations under DAC8, Greece’s Ministry of National Economy and Finance, threshold of 800,000 euros for exit tax on crypto holdings.
What remains unclear
The final outcome of the full Assembly’s review of the 2027 Finance Bill is not established. The source does not clarify specific rates or thresholds for the stablecoin swap tax beyond it being a taxable event. The broader impact on investor behavior or market activity is not addressed in the text.