France Moves to Tax Stablecoin Swaps as 10-Year Crypto Loss Relief Advances - Bitcoin Foundation

France is advancing two distinct changes to how cryptocurrency is treated for tax purposes. The first concerns stablecoin swaps: converting one crypto asset into a stablecoin would become a taxable event, rather than a transaction that can be deferred. The second introduces a loss relief mechanism allowing crypto losses to be carried forward for up to ten years, giving investors a longer window to offset gains against earlier declines.

The combination matters because it reshapes both sides of the ledger. Taxing stablecoin swaps narrows a common route investors use to step out of volatile positions without triggering a taxable disposal, since stablecoins are treated as a distinct asset rather than as cash. The extended loss carry-forward, meanwhile, offers relief to those holding positions that fell in value during past downturns.

For markets, the key question is behavioural: whether traders adjust the frequency with which they rotate into stablecoins, and whether long-term holders see the ten-year relief as improving the economics of staying invested. Watch how the measures are finalised and whether other jurisdictions follow a similar framework.