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France committee approves change that could tax BTC to USDC swaps early

The amendment, adopted Oct. 7, would remove exchange deferral for crypto-to-e-money token swaps and would apply to disposals and exchanges from Jan. 1, 2027 if enacted.

Reported · Written up by our desk · Regulation

France’s National Assembly Finance Committee has adopted an amendment that would treat certain crypto-to-stablecoin swaps as a taxable disposal even when investors do not cash out to fiat, according to CryptoSlate. The change targets moves from Bitcoin or Ether exposure into specified stablecoins structured as EU e-money tokens.

The committee adopted amendment I-CF1826 on Oct. 7 as part of a broader overhaul of how private crypto gains are calculated. Under the proposal, the provision would apply to disposals and exchanges starting Jan. 1, 2027 if it becomes law.

CryptoSlate reports that the proposal would remove the tax deferral that, under French tax authority guidance, can apply to covered crypto-to-crypto exchanges when there is no cash balancing payment. For a risk reduction trade that sells Bitcoin exposure into USDC, gains could become reportable while the proceeds remain in a crypto wallet or exchange account, the outlet said.

The amendment would also change how the acquisition basis is calculated to determine gains, and it includes a transition choice for older holdings, CryptoSlate added. It also notes that converting into fiat or using crypto to obtain goods or services can already be taxable under France’s private disposal tax regime, subject to available exemptions.

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