French Committee Approves Tax on Stablecoin Conversions Starting in 2027
- The French National Assembly Finance Committee has backed Amendment I-CF1826, introducing capital gains tax for swaps from any cryptocurrency to stablecoins.
- The amendment aims to close a tax loophole that allowed untaxed crypto gains when converting to fiat-pegged stablecoins.
- If approved, the rule will become effective in January 2027, with a plenary vote scheduled for October 13.
- MP Nicolas Sansu introduced the proposal, emphasizing it as an application of existing tax law to previously overlooked cases.
- The proposal has sparked backlash from local crypto leaders, including Owen Simonin, CEO of Meria, who criticized the removal of tax flexibility for investors.
The proposed amendment by French lawmakers aims to recover perceived losses from using stablecoins as investment vehicles without triggering taxation events. It follows similar legislative approaches taken by Italy and the UK regarding stablecoins as currency.
With the new rule potentially effective from January 2027, French investors may lose one of their last levers of tax flexibility when exiting volatile crypto markets into stablecoins without immediate taxation events. ( Source)
