France Advances Stablecoin Tax, Eyes Self-Custodial Wallet Reporting

France's National Assembly narrowly approved Amendment I-3898 on Friday, a crypto tax measure that would treat crypto-to-stablecoin swaps as taxable events starting in 2027. The amendment, originally introduced by French MP Nicolas Sansu as committee amendment I-CF1826 and adopted on Oct. 7, passed with 38 votes in favor, 37 against, and 25 abstentions. If enacted as part of the 2027 Finance Bill — scheduled for an initial vote on Tuesday — the measure would tax investors converting Bitcoin or other cryptocurrencies into stablecoins based on the weighted average purchase price of the sold asset, even without converting gains into fiat.

Beyond the stablecoin provision, French legislators rejected a separate proposal to carry forward realized crypto losses for 10 years, failing 18–75 with three abstentions. However, two additional crypto measures remain under consideration for the 2027 budget. Amendment I-CF1822 would extend France's exit tax regime to unrealized gains when taxpayers with aggregate crypto portfolios exceeding €800,000 (roughly $895,000) relocate abroad. Meanwhile, Amendment I-2701 would mandate that individuals declare self-custodial wallet holdings if their total value surpassed €100,000 (approximately $112,000) in the relevant tax year.

The package positions France among the more aggressive European jurisdictions in tightening crypto oversight, particularly around self-sovereign storage and cross-border portfolio transfers. The reporting threshold for self-custodial wallets — €100,000 — is notably lower than capital thresholds applied to traditional financial assets in France, potentially capturing a broader segment of retail crypto holders. Lawmakers have not confirmed whether the remaining amendments will reach a floor vote alongside the Finance Bill's first reading.

France's approach mirrors broader EU momentum toward harmonized crypto tax frameworks, including the bloc's ongoing implementation of the DAC8 directive for automatic tax data sharing across member states. The combination of stablecoin taxation, exit tax expansion, and self-custodial reporting suggests French authorities are building a multi-layered surveillance framework targeting both domestic and departing crypto holders ahead of the 2027 fiscal year.