France's National Assembly Finance Committee has approved proposals this week to tax conversions of cryptocurrencies into fiat-pegged stablecoins and extend the country's exit tax to crypto investors.

Amendment I-CF1826, submitted by French MP Nicolas Sansu and adopted on Wednesday, would make conversions of crypto assets into fiat-pegged stablecoins taxable events from Jan. 1, 2027. Stablecoins are blockchain tokens pegged to currencies such as the U.S. dollar or the euro and are widely used to move value between crypto positions without off-ramping into bank money, which is why such conversions do not currently trigger French capital gains tax. The amendment's explanatory text describes the current tax treatment of such conversions as a "loophole in the legislation," according to a machine translation.

Under the proposal, taxable gains would be calculated using the acquisition cost of the assets disposed of, with a weighted average applied to holdings of the same token bought at different prices.

The full Assembly is scheduled to begin examining the 2027 Finance Bill on Tuesday, Oct. 13, the stage at which the committee's adopted amendments could still be revised or voted down. If enacted, investors could incur capital gains taxes without cashing out into fiat currency.

MP Daniel Labaronne's Amendment I-CCF798, also adopted on Wednesday, would allow investors to carry forward realized crypto losses for 10 years. An exit tax amendment adopted on Thursday would cover unrealized gains when taxpayers with household crypto holdings worth more than 800,000 euros ($895,000) transfer their residences abroad. Exit taxes are designed to reach gains that have accrued but not yet been cashed in when taxpayers move their tax residence abroad, so the change would bring qualifying crypto holdings into that framework.

Diverging Approaches Across Europe

On Wednesday, Greece's Ministry of National Economy and Finance published a draft bill proposing a 10% tax on individuals' crypto capital gains, with an exemption for annual gains of up to 500 euros ($560). Unlike France's proposed tax on conversions, the Greek proposal would leave crypto-to-crypto exchanges untaxed. The contrast shows how EU member states continue to set their own national taxable events for crypto even as they fall under the bloc's shared reporting framework.

France and other European Union members are required to apply the bloc's tax reporting rules under the eighth amendment to the Directive on Administrative Cooperation (DAC8). The framework requires crypto service providers to collect users' identities and transaction data and report them to national tax authorities, which then exchange the information with their counterparts across EU member states. The crypto reporting requirements began applying on Jan. 1, 2026, and the first exchanges of information covering 2026 transactions are due by September 2027.