French Committee Backs Stablecoin Swap Tax and Crypto Exit Tax, Then Rejects the Budget

Nicolas Sansu

Nicolas Sansu, a representative from the left-wing GDR group, was a key figure behind two significant amendments adopted by France's National Assembly Finance Committee. His stablecoin amendment aims to close what its authors describe as a "hole in the legislation," proposing that swapping crypto into MiCA-regulated stablecoins should be treated as a taxable sale from January 1, 2027. Currently, such swaps do not trigger a tax event in France, as the state only collects when gains are converted to fiat currency or spent. The amendment suggests applying France's flat tax, which recently rose to 31.4%, to these transactions, arguing that stablecoins function as ordinary investment vehicles.

Sansu also filed a second amendment to extend France's exit tax to crypto holdings. This levy, typically charged on uncashed gains when a taxpayer moves their residence abroad, would apply to tax households with combined crypto assets exceeding €800,000, provided the taxpayer was a French resident for at least six of the previous ten years. This threshold mirrors the existing one for shares, and the payment deferral rules are borrowed from the stock regime. The authors emphasize that digital assets can be easily moved across borders, making their inclusion in the exit tax crucial to ensure parity with traditional assets.

MiCA

The European Union's Markets in Crypto-Assets (MiCA) regulation plays a pivotal role in the proposed stablecoin taxation. The amendment specifically targets "electronic money tokens" as defined under MiCA, a category that encompasses most stablecoins pegged to a single official currency like the dollar or euro. This regulatory framework provides the legal definition for the types of digital assets that would become subject to the new tax rules, highlighting the interconnectedness of national tax policy with broader EU-level crypto regulation.

The influence of MiCA is already being felt within the crypto industry, as evidenced by Coinbase's announcement in October 2024 that it would delist stablecoins failing to comply with MiCA for its European customers by December 30. This move, which directs users towards compliant coins such as USDC and EURC, underscores the significant impact MiCA is having on market participants and the types of stablecoins available in the European market. The French committee's proposal to tax MiCA-regulated stablecoin swaps further illustrates how the EU's regulatory efforts are shaping national legislative agendas.

January 1, 2027

The proposed effective date for both the stablecoin swap tax and the crypto exit tax, if they ultimately pass, is January 1, 2027. This date provides a significant lead time for investors and the industry to adapt to the potential changes. However, the immediate future of these amendments remains uncertain due to the legislative process.

Despite the Finance Committee's adoption of these amendments, it subsequently rejected the entire revenue section of the budget by a vote of 31 to 3. This procedural outcome means that the full National Assembly will begin its floor debate, scheduled to open on October 13 with a formal vote on October 20, from the government's original text, which does not include these crypto amendments. Their backers would therefore need to re-table them for consideration during the floor debate. Additionally, the committee approved Daniel Labaronne’s amendment, which would allow investors to carry crypto losses forward for 10 years to offset future gains, aligning crypto with existing rules for stocks, a measure that would also need to navigate the same legislative hurdles.