France Eyes Stablecoin Tax—and a 10-Year Lifeline for Crypto Losses

The Finance Committee of France's National Assembly has accepted proposed changes that would make changing cryptocurrency into a qualifying fiat-pegged stablecoin a taxable transaction from January 1, 2027. Selling Bitcoin for USDC, for instance, might set off capital-gains tax prior to the stablecoin being changed into euros or dollars.

A different amendment would enable investors to carry forward qualified realized digital-asset losses for as long as 10 years to offset future profits—a major departure from the present general regulation limiting loss offsets to the same tax year. The ideas seek to tax profits earlier and allow investors more time to benefit from losses.

Neither proposal is currently law; the amendments still need more legal procedures, and their specifics or start date could change. French crypto investors should follow the National Assembly's discussion and ultimate vote as well as explanations of qualifying stablecoins, loss eligibility, and a suggested crypto exit tax for those holding above EUR 800,000.