France's lower house adopted an amendment to tax law that would make some transactions that exchange cryptocurrencies into stablecoins subject to taxation.

Cointelegraph, a blockchain outlet, reported on Oct. 19 that if the bill becomes final law, capital gains could be taxed from 2027 when bitcoin (BTC) and other cryptocurrencies are converted into stablecoins even without being exchanged into fiat currency.

France's National Assembly passed amendment I-3898 on Oct. 17 by 38 votes to 37, with 25 abstentions. French lawmaker Nicolas Sangou (니콜라 상쥐) first proposed the measure as amendment I-CF1826, and it cleared the plenary session after being adopted on Oct. 7. Under the assembly's official schedule, a vote on Part 1 of the 2027 budget bill is set for Oct. 20.

The core change is the timing and method of taxation. If the amendment takes effect, a tax would also arise when an investor swaps bitcoin or other cryptocurrencies into stablecoins. The structure would impose tax on gains even without a cash-out. Tax calculations would apply the acquisition cost of the sold cryptocurrency and a weighted average purchase price method.

The assembly rejected a separate proposal that would allow realised crypto losses to be carried forward for 10 years, by 18 votes to 75, with 3 abstentions. The result suggested a lack of appetite to ease treatment of investor losses, despite discussions about stronger taxation.

Separately, the 2027 budget plan still contains cryptocurrency tax provisions. Amendment I-CF1822 would apply France's exit tax to unrealised valuation gains if a taxpayer with total cryptocurrency holdings exceeding 800,000 euros moves their residence abroad. The aim is to prevent high-value holders from avoiding tax by emigrating.

A plan to expand reporting obligations to self-custodied wallets is also under review. Amendment I-2701 would require individuals to report holdings if the total value of assets in self-custodied wallets exceeds 100,000 euros in the relevant tax year. Because it would include wallets managed directly by individuals, not only exchange accounts, debate is expected to continue over personal data protection and the scope of asset tracking.

The two items are still pending. As of Oct. 19, both the proposed expansion of the exit tax and the self-custodied wallet reporting proposal remained under review as part of the 2027 budget bill, but it had not been confirmed whether they would be put to debate or a vote that day. France's cryptocurrency tax overhaul is expected to start with the stablecoin taxation plan, with the next issue being whether it will be expanded in stages to include reporting obligations and taxation tied to overseas moves.