France Approves Tax Changes for Cryptocurrencies and Stablecoins

French lawmakers have approved proposals to tax cryptocurrency-to-stablecoin conversions and allow investors to carry forward trading losses for up to 10 years as part of the proposed budget for 2027. From January 1, 2027, conversions from cryptocurrencies to corresponding electronic money tokens will be subject to taxation, according to an amendment supported by the Finance Committee on October 7. The committee also approved an amendment allowing future gains to be offset by allowable losses from digital asset transactions over a 10-year period.

Additionally, lawmakers are considering the introduction of an exit tax that would apply to unrealized gains from cryptocurrencies when taxpayers move abroad. The amendment concerning unrealized gains was adopted on October 8. The exit tax will apply to crypto assets valued at over €800,000. These changes require further parliamentary approval before becoming law.

The legislation also includes proposed changes in line with the European DAC8 directive, which requires crypto service providers to collect client identification information and transaction details for reporting to tax authorities. According to Chainalysis estimates, France could gain $9.4 billion in potentially taxable digital asset activity in 2025, including $1.7 billion in cryptocurrency revenues, $2.5 billion in realized gains, and $5.2 billion in payments.