* Stablecoin Taxation:<\/strong> The Finance Committee proposed an amendment to classify crypto-to-MiCA-compliant stablecoin conversions as taxable events starting January 1, 2027. The French National Assembly\u2019s Finance Committee recently signaled a more aggressive approach to digital asset oversight. Among the most significant proposals was the reclassification of crypto-to-stablecoin swaps. Under current frameworks, many investors view moving assets into stablecoins-pegged to fiat currencies like the Euro or USD-as a neutral move. However, the committee\u2019s amendment aimed to treat these transactions as taxable sales, effectively closing a perceived loophole.<\/p>\n Furthermore, the committee targeted high-net-worth individuals by proposing an “exit tax” on crypto holdings. This measure would impact households with digital asset portfolios exceeding \u20ac800,000, aiming to prevent capital flight as France seeks to bolster its tax base. <\/p>\n To balance these restrictive measures, the committee also proposed a more investor-friendly policy: the ability to carry forward investment losses for a period of 10 years. This would provide a much-needed buffer for traders navigating the inherent volatility of the crypto market, similar to tax treatments often seen in traditional equity markets.<\/p>\n \nWhile these amendments generated significant buzz, their immediate future remains uncertain. On October 9, the Finance Committee voted 31 to 3 to reject the entire revenue section of the proposed budget. <\/p>\n Because of this rejection, the legislative process has effectively reset. When the National Assembly begins its formal debate on the revenue section-scheduled to commence on October 13 with a final vote expected on October 20-it will do so using the government\u2019s original text. Consequently, the specific crypto amendments discussed above were not included in the version currently moving forward.<\/p>\n
\n* Wealthy Investor Exit Tax:<\/strong> A new provision seeks to apply exit taxes to households holding digital assets valued above \u20ac800,000.
\n* Loss Carry-Forward:<\/strong> Lawmakers introduced a measure allowing investors to offset future gains by carrying forward crypto-related losses for up to a decade.
\n* Legislative Status:<\/strong> Despite these committee-level approvals, the broader revenue bill was rejected on October 9, forcing the National Assembly to revert to the government\u2019s original draft for upcoming debates.<\/p>\nThe Proposed Regulatory Landscape<\/h4>\n
Legislative Hurdles and Current Status<\/h4>\n