France Moves to Tax Stablecoin Swaps as 10-Year Crypto Loss Relief Advances

French lawmakers have advanced a legislative bill that introduces taxation on specific cryptocurrency trades involving stablecoins, alongside extending the capital loss carryback duration for crypto investors to a period of 10 years. These proposed updates to cryptocurrency trading rules form a segment of the fiscal year 2027 draft budget framework and require additional legislative steps before officially taking effect.

On October 7, the National Assembly Finance Committee approved a bill amendment concerning stablecoins. A separate legislative amendment was also passed that would allow investors to offset upcoming capital gains using past capital losses, in addition to applying current-year capital losses.

France Targets Stablecoin Conversions Under 2027 Tax Plan

Put forward by Nicolas Sansu, Amendment I-CF1826 aims to apply a tax on traditional currency conversions into electronic money tokens beginning January 1, 2027. Electronic money tokens—which encompass eligible fiat-pegged stablecoins—are defined within the European Union’s Markets in Crypto-Assets Regulation and associated texts.

While capital gains taxes do not apply to e-commerce transactions utilizing cryptocurrencies, exemptions are currently available for investors who swap Bitcoin and Ethereum for dollar- or euro-pegged stablecoins.

🇫🇷 REGULATION: A French parliamentary committee has approved proposed taxes on stablecoin transactions and crypto holdings for investors leaving the country under the 2027 budget bill.

Neither measure has become law yet.

— CoinGape (@CoinGapeMedia) October 9, 2026

The incoming regulatory adjustment would eliminate the tax deferral previously granted to stablecoin transactions. Under the updated framework, profits and losses resulting from stablecoin activities will generally be recognized and subjected to taxation determined by the sale price and cost basis of the exchanged stablecoins, including select fees incurred during the exchange process.

Read More: U.S. vs. Europe: Who Is Winning the Race to Regulate Crypto?

Taxpayers holding assets acquired prior to 2027 can choose either to report the precise cost basis of those purchased assets or to lump them in with assets already held as of December 31, 2026, reporting a single aggregate cost basis for all assets possessed on that date. Once a taxpayer selects one of these methods, the choice is irrevocable.

Crypto Loss Relief, Exit Tax and DAC8 Reporting

Another proposal endorsed by the committee, I-CF798 introduced by Daniel Labaronne, grants taxpayers the ability to offset digital asset gains with losses incurred during the current year for a maximum span of 10 years. Presently, taxpayers are limited to offsetting digital asset gains with current-year losses within the same timeframe. Although this proposal is designed to reduce the tax burden on digital assets, it does not compensate for drops in asset valuation.

Measures intended to partially circumvent the Sansu I-CF1822 proposal gained approval on October 8. This specific proposal from Sansu mandates an emigration tax for certain virtual currency holders who relocate abroad if their total holdings exceed €800,000, a rule anticipated to be implemented.

France’s parliamentary committee approves proposed taxes on stablecoin trades and crypto holdings when investors exit the country under the 2027 budget bill.

Neither measure is law yet, and both still face further legislative steps.

— The Crypto Times (@CryptoTimes_io) October 9, 2026

Furthermore, the European Union’s DAC8 regulations mandate that covered entities report on crypto service users and transactions beginning in 2026, alongside information sharing regarding taxes paid across EU member states starting in 2027. Complying with these reporting protocols does not automatically convert crypto transfers into taxable occurrences.

French firms Bull Bitcoin and Paymium contested the national reporting mandate. On September 17, the Council of State dismissed an appeal seeking emergency relief while keeping its decision pending regarding a separate appeal to invalidate the national reporting rule.

Read More: What MiCA Still Doesn’t Solve — Europe’s Biggest Crypto Regulation Problems

Official figures for 2024 show that France recorded $368 million in cryptocurrency capital gains declared across the tax filings of roughly 24,000 taxpayers. Additionally, Chainalysis estimated that French cryptocurrency transaction taxes could reach $9.4 billion in 2025, a projection that does not account for taxes owed but ultimately unpaid.

All three budget amendments are currently suggestions submitted to and evaluated by committees rather than fully enacted laws, representing tax proposals that remain actively debated.

Frequently Asked Questions

When are the proposed French crypto tax changes scheduled to take effect?

The provisions, including the taxation on stablecoin conversions and the emigration tax, are tied to the draft budget document for fiscal year 2027 and require further legislative action before becoming law.

How long can investors carry back capital losses under the proposed rules?

The committee-approved proposal allows taxpayers to offset digital asset gains with current-year losses for up to 10 years.

Do EU DAC8 regulations make crypto transfers taxable events?

No. Reporting information under DAC8 regulations does not categorize crypto transfers as taxable events.