French lawmakers are proposing measures to tax cryptocurrency holdings, marking an effort to bring digital assets in line with existing rules for traditional investments.
A bill amendment filed by left-wing deputy Nicolas Sansu and 16 co-signers would impose an exit tax on unrealized crypto gains for residents leaving France. The tax would apply to portfolios worth more than €800,000 and would target individuals who lived in France for at least six of the past ten years.
How the Exit Tax Would Function
Under the proposal, holders would owe taxes on paper gains without selling assets. For example, someone who purchased cryptocurrency for €200,000 now valued at €1 million would face taxation on the €800,000 unrealized gain upon departure, even if no sale occurs.
The measure would require departing residents to declare all cryptocurrency holdings, including coins held on trading platforms and in personal wallets abroad. France currently applies a similar exit tax to shares held by wealthy residents, but crypto has remained exempt.
Stablecoin Conversion Rules
A separate Sansu proposal targets stablecoin transactions. Currently, swapping Bitcoin for a dollar-pegged stablecoin in France avoids taxation until the holder converts to cash. From January 2027, such swaps would be treated as taxable sales, subject to France's 31.4% flat tax rate.
The amendment's authors characterize the current treatment as a gap in French tax law, noting that the UK and Italy already tax stablecoin conversions.
Uncertain Path Forward
Both measures face procedural hurdles. On October 9, the National Assembly's finance committee rejected the budget's entire tax section by a vote of 31 to 3, requiring debate to restart from the government's original text. Each measure must pass again through committee discussion and then clear the Senate.
France joins other nations strengthening crypto tax enforcement. Britain's tax authority is conducting a billionaire compliance initiative and will receive crypto exchange data beginning in 2027. The European Union has published a €23 billion tax forecast for cryptocurrency.
