France considers crypto tax changes

France is exploring several tax-related adjustments that could impact cryptocurrency holders, as detailed in the draft budget law for 2027 (PLF 2027). These proposals are currently under review by the French National Assembly's finance committee and aim to address various aspects of how cryptocurrencies are taxed in the country.

Loss deferral for crypto investors

One proposed amendment, I-CF798, introduced by deputy Daniel Labaronne, would allow cryptocurrency investors to defer losses for up to ten years. This would give investors more flexibility to manage their tax liabilities over time, as currently, losses must be deducted from gains in the same year.

Tax on stablecoin conversions

Another amendment, I-CF1826, has sparked debate in the crypto community. It would impose taxes on gains made when converting a cryptocurrency into a regulated stablecoin under the European Mica regime, starting in 2027. This change would mark a shift from the current practice of not taxing such exchanges in France.

Exit tax on crypto assets

Amendment I-CF1822, submitted by Nicolas Sansu and deputies from the Left, Democratic and Republican group, would include cryptocurrencies in the Exit tax. This would affect individuals holding more than 800,000 euros in crypto assets who leave France, subjecting them to additional tax obligations.

Declaration of large crypto wallets

Amendment I-CF821, proposed by Charles de Courson, would require individuals to declare personal crypto wallets valued at over 100,000 euros. Previously, such wallets did not need to be reported, and this change would increase transparency in crypto holdings.

Stricter penalties for non-cooperation

Amendment I-CF1756 aims to increase the fine for companies that refuse to provide transaction details from 10,000 euros to 50,000 euros. This measure seeks to encourage compliance with financial regulations and improve oversight of crypto transactions.

Next steps for the amendments

The proposed amendments have been approved by the finance committee but still require approval in a public session and review by the Senate before they can be finalized as part of the 2027 budget law.