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French crypto holders face an irrevocable cost-basis choice under a draft stablecoin swap tax

France's parliamentary Finance Committee approved a tax on crypto-to-stablecoin conversions for the 2027 budget, though the measure is not yet law. A companion 10-year loss carry-forward, reported by crypto.news, makes the cost-basis choice on pre-2027 coins the decision to get right.

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Draft tax hits stablecoin swaps; cost-basis pick is final How the proposed French crypto tax measures would reach holders. The proposals remain at committee stage and need further parliamentary approval.

Swaps into e-money tokens taxable from January 1, 2027. Allocation election is irrevocable. Profitable portfolios lose coin-level losses under it. Losses carry forward 10 years. Exit tax for leavers with over 800,000 euros in crypto. Proposals remain at committee stage.

Draft tax hits stablecoin swaps; cost-basis pick is final
WhoHowKindClaim
Holders swapping to stablecoinsConversions into qualifying electronic money tokens would become taxable from January 1, 2027exposure4
Holders choosing cost methodPortfolio allocation is an irrevocable election, made on the first return covering a taxable disposaldecision15
Portfolios in profit overallAllocation gives every coin the same cost-to-value ratio, so individual embedded losses disappearcost17
Holders with crypto lossesQualifying losses could be carried forward 10 years and offset against eligible gains in that periodcapability9
Holders leaving FranceProposed exit tax would apply to those leaving France with over 800,000 euros in crypto assetsexposure8
Holders timing the start dateProposals remain at committee stage; the January start date remains subject to the legislative processconstraint11

What happened

  • Nicolas Sansu's amendment I-CF1826 would make conversions into qualifying electronic money tokens taxable from January 1, 2027.
  • French rules now let individuals swap bitcoin or ether into a dollar- or euro-pegged stablecoin without immediately recognizing a gain, the same treatment as crypto-to-crypto trades.
  • Coins bought before 2027 could be costed at documented purchase prices or by spreading the portfolio's total cost across holdings by value on December 31, 2026.
  • Under current rules, crypto losses offset only gains from the same tax year, and unused losses cannot be applied in later years.
  • A separate exit-tax amendment would apply to people leaving France with more than 800,000 euros in crypto assets, Crypto Briefing reported.

Why it matters

  • What it limits constraint From January 2027, moving an appreciated position into a euro- or dollar-pegged token to wait out volatility would trigger the same tax as selling it for currency.
  • Who has to decide decision Holders get one pick of cost method, made on the first return after a taxable 2027 disposal, and cannot move back to coin-by-coin records if the blend proves costlier.
  • Who's exposed exposure Wealthier holders weighing a move abroad would owe tax on certain unrealized crypto gains at departure if the exit-tax amendment survives.

The amendment's explanatory statement makes a narrow case. Under current rules, it argues, holders can move an appreciated bitcoin or ether gain into a fiat-backed token without paying the tax a direct sale for currency would trigger [6]. The fix is just as narrow. It removes the exemption only where the holder receives an electronic money token as the EU's MiCA regulation defines one [12], so on this text France leaves other crypto-to-crypto swaps alone. Once a swap is taxable, the gain is the disposal value minus the acquisition cost, with documented transaction fees deducted [13].

The cost-basis options for coins bought before 2027 are where the holder actually has a choice, as crypto.news described the amendment text [14]. Under the allocation option, each coin's assigned cost is the portfolio's total acquisition cost multiplied by that coin's share of portfolio value on December 31, 2026. Divide both sides by the coin's value and every coin carries the same cost-to-value ratio as the whole portfolio [17]. A holder with thin records gets a usable basis. In a portfolio that is in profit overall, a coin bought near a top loses its embedded loss, because the blend gives it the same gain ratio as everything else [17].

Daniel Labaronne's amendment, I-CF798, changes what that embedded loss is worth [9]. With losses currently lapsing at the end of the tax year [10], a documented loss on a losing coin had value only in a year with winners to absorb it. A 10-year carry-forward stretches that window from a single tax year to a decade [16]. If both amendments pass, a holder who takes the allocation option for convenience gives up deductions that the second amendment makes portable.

If the swap tax passes without Labaronne's change, a holder converting a mixed portfolio into stablecoins in 2027 can net losses only against that year's gains [10]. Both could also stall. The committee adopted the swap tax on October 7 [3], and it, the loss relief and the exit tax all need further parliamentary approval, with the January start date subject to that process [11]. Crypto Briefing likewise described the measures as not yet enacted [2].

I think the decision to make before January 2027 is about records more than rebalancing. A 2026 swap into a stablecoin keeps today's deferral [5], but it postpones only the tax that a later conversion to currency would trigger anyway [6]. It also changes what sits in the portfolio on December 31, 2026, the date the allocation option values [14]. The case against that view is a holder who wants long-term dollar or euro exposure and never plans to cash out. For that holder a pre-2027 swap avoids a tax that would otherwise arrive with the swap itself [1]. That case depends on the amendment passing with its date intact, and if the date slips or the text is dropped [11], waiting would have cost nothing.

What to watch

  • Whether amendments I-CF1826 and I-CF798 survive the remaining budget readings together, since the swap tax without loss relief leaves same-year netting as the only offset.
  • Whether the final text keeps the January 1, 2027 start and the December 31, 2026 valuation date for the portfolio allocation option.
  • Whether the exit tax's reported 800,000-euro threshold holds in the version that reaches a final vote.

Information, not investment advice. This story is general information about companies and markets, drawn from cited reporting. It is not a recommendation to buy, sell or hold any security; check the cited sources before acting.

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Evidence72
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Hype gap+35
Incentives40
Confidence62

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  1. [1]

    French lawmakers on the Finance Committee approved a proposal to tax cryptocurrency conversions into qualifying stablecoins starting January 1, 2027, as part of the proposed 2027 budget.

    Reported SupportedView cited source
  2. [2]

    A French parliamentary committee approved measures to tax crypto-to-fiat-stablecoin conversions for the 2027 budget; the measures have not yet been enacted into law.

    Reported Supported Source: Crypto BriefingView cited source
  3. [3]

    According to French National Assembly records, the Finance Committee adopted the stablecoin taxation amendment on October 7.

    Reported Supported Source: crypto.news, citing National Assembly recordsView cited source
  4. [4]

    Amendment I-CF1826, submitted by lawmaker Nicolas Sansu, would make conversions from cryptocurrencies into qualifying electronic money tokens taxable transactions beginning January 1, 2027.

    Reported SupportedView cited source
  5. [5]

    Current French tax rules generally allow individuals to exchange one cryptocurrency for another without immediately recognizing a taxable capital gain, within applicable deferral provisions; converting Bitcoin or Ethereum into a qualifying stablecoin can receive the same treatment, even when the token is pegged to the US dollar or euro.

    Reported SupportedView cited source
  6. [6]

    The amendment's explanatory statement argued that existing rules allow investors to convert appreciated cryptocurrencies into fiat-backed stablecoins without triggering the tax that would apply if they sold the same assets directly for traditional currency.

    Reported Supported Source: Explanatory statement of amendment I-CF1826, as reported by crypto.newsView cited source
  7. [7]

    Another proposal would impose an exit tax on certain unrealized crypto gains when eligible holders, described as wealthy investors, move their tax residence outside France.

    Reported SupportedView cited source
  8. [8]

    The proposed exit tax would apply to those leaving France with over 800,000 euros in crypto assets.

    Reported Supported Source: Crypto BriefingView cited source
  9. [9]

    The Finance Committee approved amendment I-CF798, submitted by Daniel Labaronne, allowing qualifying capital losses from digital asset disposals to be carried forward for 10 years and offset against eligible gains realized in that period.

    Reported Supported Source: crypto.newsView cited source
  10. [10]

    Under the existing framework, losses on qualifying private crypto disposals generally offset gains in the same tax year, with unused losses not available for deduction against gains in subsequent years.

    Reported SupportedView cited source
  11. [11]

    All three amendments require further parliamentary approval before becoming law; the proposals remain at committee stage and the proposed January implementation date remains subject to the legislative process.

    Reported SupportedView cited source
  12. [12]

    Sansu's proposal would remove the exemption for exchanges in which investors receive electronic money tokens as defined under the EU's Markets in Crypto-Assets Regulation.

    Reported SupportedView cited source
  13. [13]

    Gains or losses from covered transactions would be calculated as the difference between disposal value and acquisition cost, with documented transaction expenses deductible when determining disposal value.

    Reported SupportedView cited source
  14. [14]

    For cryptocurrencies purchased before January 1, 2027, investors could use documented purchase prices for individual assets or allocate the portfolio's total acquisition cost as of December 31, 2026, among the assets held on that date based on their respective values.

    Reported SupportedView cited source
  15. [15]

    Taxpayers choosing the portfolio allocation method would make an irrevocable election when filing their first tax return covering a taxable disposal after the implementation date.

    Reported SupportedView cited source
  16. [16]

    The window for using a qualifying crypto loss would go from the tax year in which it arises to a decade.

    Derived Supported
  17. [17]

    Under the allocation option, each coin's assigned cost equals the portfolio's total acquisition cost times the coin's share of portfolio value on December 31, 2026, so every coin carries the same cost-to-value ratio; in a portfolio in profit overall, every coin shows a gain and individual embedded losses disappear.

    Derived Supported

Sources

5 independent publishers whose own reporting we read for this story.

  1. cointelegraph.com

    1 article · October 9, 2026

    French lawmakers back stablecoin swap tax in 2027 budget bill
  2. crypto.news

    1 article · October 8, 2026

    France advances stablecoin tax plan and 10-year crypto loss relief
  3. cryptobriefing.com

    3 articles · October 10, 2026

    France committee approves stablecoin tax, crypto exit tax for 2027 budget
  4. decrypt.co

    1 article · October 10, 2026

    French Committee Backs Stablecoin Swap Tax and Crypto Exit Tax, Then Rejects the Budget
  5. news.bitcoin.com

    1 article · October 10, 2026

    French Committee Approves Tax on Stablecoin Conversions From 2027

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