French Committee Advances Crypto Tax Amendments, Then Rejects Budget

What happened: France's National Assembly Finance Committee adopted amendments to tax crypto-to-stablecoin swaps as capital gains at a 31.4% flat rate and to extend the exit tax to crypto portfolios exceeding €800,000. A third amendment allows a 10-year loss carryforward for crypto investors. However, the committee subsequently voted 31-3 to reject the entire revenue section of the 2027 budget, meaning the amendments must be reintroduced and approved in upcoming floor debates starting October 13.

Why it matters: If enacted, the amendments would bring France's crypto tax treatment closer to that of traditional securities, but their future remains uncertain after the committee's budget rejection. The proposed measures, particularly the stablecoin swap tax and expanded exit tax, could impact high-net-worth individuals and crypto businesses considering France as a domicile. The legislative process highlights the complexity and political sensitivity of crypto taxation in the EU's second-largest economy.

Source: Decrypt