A French parliamentary amendment would make swaps from Bitcoin into certain stablecoins a taxable event, even if the investor never withdraws cash. The provision would apply from Jan. 1, 2027 if enacted. The amendment also changes how acquisition cost is calculated and gives older holdings a transition choice.
France's proposed crypto tax changes would make a move from Bitcoin or Ether into certain stablecoins a taxable disposal, even if the investor never withdraws cash. The National Assembly's Finance Committee adopted amendment I-CF1826 on Oct. 7 as part of a broader overhaul of how private crypto gains are calculated.
However, the change would not take effect immediately. The provision would apply to disposals and exchanges from Jan. 1, 2027 if enacted.
Swaps into e-money tokens lose deferral
Under French tax authority guidance, covered crypto-to-crypto exchanges without a cash balancing payment receive tax deferral. The amendment would remove that deferral when the investor receives e-money tokens as defined by the EU's MiCA regulation, or related rights.
As a result, a swap out of Bitcoin into a qualifying token could recognize a gain before any later cash withdrawal. Circle's European white paper identifies USDC as an e-money token under the same MiCA provision.
The amendment's sponsors describe deferral on fiat-backed stablecoin conversions as a legislative loophole.
Two routes for pre-2027 holdings
The proposal would also replace the portfolio-based calculation with one focused on the crypto-assets actually disposed of. For assets of the same nature bought at different prices, it specifies weighted-average acquisition value.
For holdings acquired before 2027, an investor could use evidenced actual acquisition costs. Alternatively, the investor could allocate the portfolio acquisition price calculated under the old rules at Dec. 31, 2026 among the assets held then, in proportion to their values on that date. The text makes that choice irrevocable for the entire portfolio.
Historical costs decide which route recognizes more gain first. In the source's example, an investor whose Bitcoin cost €20,000 and is worth €60,000 would book a €40,000 gain on a swap into USDC under actual cost, against €24,000 under allocation.
Losses still cannot carry forward
A taxable swap would give the received tokens a basis based on the consideration value already used to calculate the gain, so the original gain would not be recognized twice. The amendment does not rewrite the existing loss restriction: crypto gains and losses offset within the same tax year, while a net crypto loss cannot be carried into later years.
The next legislative test remains ahead. The 2027 budget dossier, checked Oct. 12, lists National Assembly plenary discussion for Oct. 13.
Source: CryptoSlate
Trading involves risk.
Risk Disclaimer
